Limelight Networks Third Quarter Earnings Sneak Peek
Limelight Networks, Inc. (NASDAQ:LLNW) will unveil its latest earnings on Thursday, November 1, 2012. Limelight Networks is a provider of high-performance content delivery network services.
Limelight Networks, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 10 cents per share, a wider loss from the year-earlier quarter net loss of 5 cents. During the past three months, the average estimate has moved down from a loss of 8 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 10 cents during the last month.
Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the second quarter, the company reported net loss of 9 cents per share versus a mean estimate of a loss of 9 cents per share. In the first quarter, the company beat estimates by 0 cents.
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A Look Back: In the second quarter, the company’s loss narrowed to a loss of $9.8 million (10 cents a share) from a loss of $13.9 million (12 cents) a year earlier, meeting analyst expectations. Revenue fell 12.1% to $44.4 million from $50.5 million.
Stock Price Performance: Between August 30, 2012 and October 26, 2012, the stock price had fallen 40 cents (-15.9%), from $2.51 to $2.11. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 19, 2012, when shares rose for seven straight days, increasing 12.2% (+31 cents) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 22% (-71 cents) over that span.
Wall St. Revenue Expectations: Analysts are projecting a rise of 5.8% in revenue from the year-earlier quarter to $44.8 million.
On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 15% in the third quarter of the last fiscal year, 16.8% in fourth quarter of the last fiscal year and 11% in the first quarter and then fell again in the second quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 5.89 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 6.94 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 9% to $28.2 million while assets decreased 7.4% to $165.9 million.
Analyst Ratings: There are mostly holds on the stock with five of nine analysts surveyed giving that rating.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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