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S&P 500 (NYSE:SPY) component Spectra Energy (NYSE:SE) will unveil its latest earnings on Thursday, November 1, 2012. Spectra Energy, through its subsidiaries and equity affiliates, owns and operates natural gas-related energy assets.
Spectra Energy Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of 31 cents per share, a decline of 18.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 36 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 32 cents during the last month. Analysts are projecting profit to rise by 10.7% versus last year to $1.58.
Past Earnings Performance: The company enters this earnings report having missed estimates the last four quarters. Last quarter, the company fell short of expectations by 3 cents, reporting profit of of 33 cents per share against a mean estimate of net income of 36 cents per share.
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A Look Back: In the second quarter, profit fell 24.3% to $215 million (33 cents a share) from $284 million (44 cents a share) the year earlier, missing analyst expectations. Revenue fell 6.4% to $1.11 billion from $1.19 billion.
Wall St. Revenue Expectations: On average, analysts predict $1.15 billion in revenue this quarter, a rise of 2.7% from the year-ago quarter. Analysts are forecasting total revenue of $5.28 billion for the year, a decline of 1.3% from last year’s revenue of $5.35 billion.
Analyst Ratings: There are mostly holds on the stock with seven of 11 analysts surveyed giving that rating.
An income boost this time around would be welcome news after profit drops in the past three quarters. Net income fell 9.7% in the fourth quarter of the last fiscal year, by 6.7% in the first quarter and again in the second quarter.
On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 4.2% in the first quarter and dropped again in the second quarter.
Stock Price Performance: Between August 2, 2012 and October 26, 2012, the stock price fell 56 cents (-1.9%), from $29.58 to $29.02. The stock price saw one of its best stretches over the last year between July 10, 2012 and July 20, 2012, when shares rose for nine straight days, increasing 5% (+$1.46) over that span. It saw one of its worst periods between October 17, 2012 and October 24, 2012 when shares fell for six straight days, dropping 4.3% (-$1.30) over that span.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.41 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 0.44 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5.4% to $3.44 billion while assets decreased 2.9% to $1.4 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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