Acme Packet Third Quarter Earnings Sneak Peek

Acme Packet, Inc. (NASDAQ:APKT) will unveil its latest earnings on Thursday, October 25, 2012. Acme Packet provides session border controllers that enable service providers to deliver secure interactive communications–voice, video, and other real-time multimedia sessions–across Internet Protocol network borders.

Acme Packet, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 4 cents per share, a swing from profit of 12 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from 6 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 4 cents during the last month. For the year, analysts are projecting net loss of 4 cents per share, a spike from net income of 65 cents last year.

Past Earnings Performance: The company met estimates last quarter after falling short of forecasts in the prior two. Before reporting profit of 2 cents per share in the second quarter to fall in line with expectations, the company beat estimates by 3 cents in the first quarter.

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A Look Back: In the second quarter, the company swung to a loss of $127,000 (0 cents a share) from a profit of $14 million (20 cents) a year earlier, meeting analyst expectations. Revenue fell 15.2% to $67.6 million from $79.7 million.

Stock Price Performance: Between September 21, 2012 and October 19, 2012, the stock price dropped $1.87 (-10.3%), from $18.10 to $16.23. The stock price saw one of its best stretches over the last year between April 20, 2012 and April 27, 2012, when shares rose for six straight days, increasing 7.3% (+$1.97) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 8.6% in revenue from the year-earlier quarter to $64.5 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 4.2% in the first quarter and dropped again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 9.04 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Analyst Ratings: There are mostly holds on the stock with 16 of 19 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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