Compuware Quarterly Earnings Sneak Peek

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Compuware Corporation (NASDAQ:CPWR) will unveil its latest earnings on Tuesday, October 23, 2012. Compuware provides software products and professional services that improve the performance of information technology organizations.

Compuware Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 6 cents per share, a decline of 40% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 9 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 6 cents during the last month. For the year, analysts are projecting profit of 43 cents per share, a rise of 7.5% from last year.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at net income of 5 cents per share against a mean estimate of profit of 4 cents. The company fell in line with estimates in the fourth quarter of the last fiscal year.

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A Look Back: In the first quarter, profit fell 38.4% to $10.5 million (5 cents a share) from $17 million (8 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 1.7% to $226.2 million from $230 million.

Wall St. Revenue Expectations: Analysts predict a decline of 12.5% in revenue from the year-earlier quarter to $228 million.

Stock Price Performance: Between July 24, 2012 and October 17, 2012, the stock price rose $1.07 (12.4%), from $8.63 to $9.70. The stock price saw one of its best stretches over the last year between January 30, 2012 and February 14, 2012, when shares rose for 12 straight days, increasing 12.2% (+95 cents) over that span. It saw one of its worst periods between March 26, 2012 and April 4, 2012 when shares fell for eight straight days, dropping 5.8% (-55 cents) over that span.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 15.4% in the second quarter of the last fiscal year, 2.4% in the third quarter of the last fiscal year and 6.6%in the fourth quarter of the last fiscal year before dropping in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.04 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: With five analysts rating the stock a buy, none rating it a sell and none rating the stock a hold, there are indications of a bullish stance by analysts.

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

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