Lululemon (LULU) Outperforms Earnings and Revenue Estimates in the Third Quarter

Lululemon (LULU) reported $1.62 per share in quarterly earnings, topping the Zacks Consensus Estimate of $1.39 per share. This compares to $1.16 per share in the previous year. Non-recurring items have been removed from these values.

This quarterly report represents a 16.55 percent earnings surprise. This athletic gear producer was predicted to report earnings of $1.21 per share a quarter ago, but it actually reported earnings of $1.65, a 36.36 percent surprise.

The company has outperformed consensus EPS projections four times in the last four quarters.

Lululemon, which is part of the Zacks Textile – Apparel category, reported $1.45 billion in revenue for the quarter ending October 2021, which was 1.37 percent more than the Zacks Consensus Estimate. This compared to $1.12 billion in revenue a year ago. Over the last four quarters, the company has surpassed consensus revenue projections four times.

Lululemon stock has gained around 22.4 percent since the start of the year, compared to 25.2 percent for the S&P 500.

Near-term market movements and changes in earnings estimate revisions have a substantial association, according to empirical studies. Investors can keep track of earnings estimate revisions on their own or use a tried-and-true grading tool like the Zacks Rank, which has a proven track record of harnessing the power of revisions to earnings estimates.