Forest Oil Second Quarter Earnings Sneak Peek

Forest Oil Corporation (NYSE:FST) will unveil its latest earnings on Monday, July 30, 2012. Forest Oil is an independent oil and gas company engaged in the acquisition, exploration, development, and production of natural gas and liquids mainly North America.

Forest Oil Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 6 cents per share, a decline of 83.3% 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 21 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 11 cents during the last month. For the year, analysts are projecting net income of 37 cents per share, a decline of 57.5% from last year.

Past Earnings Performance: The company showed profit of 11 cents per share versus a mean estimate of net income of last quarter. This marks the fourth month of falling short of estimates.

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A Look Back: In the first quarter, the company’s loss widened to a loss of a $32.7 million (29 cents a share) from a loss of $3.3 million (3 cents) a year earlier, missing analyst expectations. Revenue fell 21.5% to $158.9 million from $202.6 million.

Stock Price Performance: Between April 27, 2012 and July 24, 2012, the stock price fell $6.78 (-50.9%), from $13.32 to $6.54. The stock price saw one of its best stretches over the last year between July 12, 2012 and July 20, 2012, when shares rose for seven straight days, increasing 25.9% (+$1.48) over that span. It saw one of its worst periods between May 9, 2012 and May 18, 2012 when shares fell for eight straight days, dropping 22.6% (-$2.48) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 33.2% in revenue from the year-earlier quarter to $159 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 17.2% in the third quarter of the last fiscal year and 17.4% in fourth quarter of the last fiscal year before falling again in the first quarter.

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

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.61 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.62 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 6.9% to $364.3 million while assets rose 5.1% to $221.4 million.

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

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