Benzinga | Jan 5, 2021 10:20AM EST

Earnings Preview: Landec

On Wednesday, January 06, Landec (NASDAQ:LNDC) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street expects EPS of $0.01 and sales around $134.24 million. Landec's loss in the same period a year ago was $0.16 per share. Quarterly sales came in at $142.59 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be up 106.25%. Sales would be down 5.86% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2020EPS Estimate -0.11 0.03 0.05 -0.06EPS Actual -0.11 0.05 0.04 -0.16Revenue Estimate 127.86 M 156.09 M 153.00 M 142.54 MRevenue Actual 135.64 M 156.13 M 152.93 M 142.59 M

Stock Performance

Over the last 52-week period, shares are up 7.54%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Landec is scheduled to hold the call at 17:00:00 ET and can be accessed here.