Calgon Carbon Corp Third Quarter Earnings Sneak Peek
Calgon Carbon Corporation (NYSE:CCC) will unveil its latest earnings on Friday, November 2, 2012. Calgon Carbon is globally engaged in services, products, and solutions for purifying water and air.
Calgon Carbon Corporation Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 12 cents per share, a decline of 52% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 24 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 16 cents during the last month. Analysts are projecting profit to rise by 18.3% compared to last year’s 58 cents.
Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported net income of 19 cents per share against a mean estimate of 20 cents. Two quarters ago, it beat expectations by 2 cents with profit of 14 cents.
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Stock Price Performance: Between August 3, 2012 and October 29, 2012, the stock price fell $2.10 (-14.4%), from $14.58 to $12.48. The stock price saw one of its best stretches over the last year between August 28, 2012 and September 6, 2012, when shares rose for seven straight days, increasing 6.2% (+83 cents) over that span. It saw one of its worst periods between October 4, 2012 and October 15, 2012 when shares fell for eight straight days, dropping 4.8% (-67 cents) over that span.
A Look Back: In the second quarter, profit fell 3.6% to $10.9 million (19 cents a share) from $11.3 million (20 cents a share) the year earlier, missing analyst expectations. Revenue rose 9.7% to $148.4 million from $135.3 million.
Wall St. Revenue Expectations: On average, analysts predict $139.6 million in revenue this quarter, a decline of 2.8% from the year-ago quarter. Analysts are forecasting total revenue of $566.5 million for the year, a rise of 4.6% from last year’s revenue of $541.5 million.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 15.5% in the third quarter of the last fiscal year, 5.1% in the fourth quarter of the last fiscal year and 9.8% in the first quarter before increasing again in the second quarter.
The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 59% in the fourth quarter of the last fiscal year, by 8.7% in the first quarter and again in the second quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.27 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. The company regressed in this liquidity measure from 2.44 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 9.4% to $125.2 million while assets rose 1.6% to $284.1 million.
Analyst Ratings: With three analysts rating the stock as a buy, none rating it as a sell and three rating it as a hold, there are indications of a bullish outlook.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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