Earnings Outlook for LAIX

LAIX LAIX will be releasing its next round of earnings this Wednesday, May 26. For all of the relevant information, here is your guide for Wednesday's Q1 earnings announcement.

What Are Earnings, Net Income, 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

Analysts are predicting LAIX will report a loss of $0.6 per share on revenue of $48.78 million. In the same quarter last year, LAIX announced EPS of $0.56 on revenue of $32.25 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 down 7.14%. Revenue would be up 51.27% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the past 52-week period, shares of LAIX have declined 46.17%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. LAIX is scheduled to hold the call at 21:00:00 ET and can be accessed here.