A Preview Of Lazard's Earnings

Lazard LAZ unveils its next round of earnings this Friday, April 30. Here is Benzinga's everything-that-matters guide for the 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 covering Lazard modeled for quarterly EPS of $0.89 on revenue of $658.44 million. In the same quarter last year, Lazard reported earnings per share of $0.58 on revenue of $562.81 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Friday, EPS would be up 53.45%. Revenue would be have grown 16.99% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of Lazard were trading at $46.17 as of April 28. Over the last 52-week period, shares are up 83.98%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Lazard is scheduled to hold the call at 08:00:00 ET and can be accessed here.