Quiksilver Fourth Quarter Earnings Sneak Peek

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Quiksilver, Inc. (NYSE:ZQK) will unveil its latest earnings on Thursday, December 13, 2012. Quiksilver designs, produces and distributes apparel, wintersports equipment, footwear, accessories and related products.

Quiksilver, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 10 cents per share, a rise of 66.7% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 70.6% compared to last year’s 5 cents.

Past Earnings Performance: Last quarter, the company topped expectations by 3 cents, coming in at profit of 9 cents per share versus a mean estimate of net income of 6 cents per share. This followed two straight quarters of missing estimates.

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Stock Price Performance: Between October 11, 2012 and December 7, 2012, the stock price had risen 73 cents (21%), from $3.47 to $4.20. The stock price saw one of its best stretches over the last year between January 26, 2012 and February 3, 2012, when shares rose for seven straight days, increasing 6% (+26 cents) over that span. It saw one of its worst periods between April 2, 2012 and April 11, 2012 when shares fell for seven straight days, dropping 10.9% (-45 cents) over that span.

A Look Back: In the third quarter, profit rose 20.8% to $12.6 million (7 cents a share) from $10.4 million (6 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 1.8% to $512.4 million from $503.3 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.33 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 2.61 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 20.4% to $408 million while assets rose 7.4% to $950.3 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 10.1% in the fourth quarter of the last fiscal year, 5.4% in the first quarter and 3% in the second quarter before increasing again in the third quarter.

The company is riding some good income statement momentum into the upcoming earnings announcement. The company reported losses in the first quarter and the second quarter, but finished in the black with income of $12.6 million in the third.

Wall St. Revenue Expectations: Analysts are projecting a rise of 3.1% in revenue from the year-earlier quarter to $562.1 million.

Analyst Ratings: There are five out of eight analysts surveyed (62.5%) rating Quiksilver a buy.

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

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