SPX Corp Third Quarter Earnings Sneak Peek

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SPX Corporation (NYSE:SPW) will unveil its latest earnings on Wednesday, October 31, 2012. SPX is a global multi-industry manufacturing company offering highly-specialized engineered solutions to solve critical problems for customers.

SPX Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.05 per share, a decline of 13.2% 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 $1.39. Between one and three months ago, the average estimate moved down. It also has dropped from $1.06 during the last month. Analysts are projecting profit to rise by 12.3% versus last year to $3.84.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting net income of 78 cents per share against a mean estimate of profit of 75 cents per share.

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A Look Back: In the second quarter, profit rose 38.2% to $47.4 million (93 cents a share) from $34.3 million (67 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 8.9% to $1.26 billion from $1.38 billion.

Stock Price Performance: Between August 1, 2012 and October 25, 2012, the stock price rose $7.84 (13.3%), from $58.83 to $66.67. The stock price saw one of its best stretches over the last year between December 28, 2011 and January 6, 2012, when shares rose for seven straight days, increasing 10.5% (+$6.22) over that span. It saw one of its worst periods between May 11, 2012 and May 18, 2012 when shares fell for six straight days, dropping 11% (-$8.63) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 6.5% in revenue from the year-earlier quarter to $1.3 billion.

Key Stats:

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. After net income declines in the fourth quarter of the last fiscal year and first quarter, profit rose 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 2.8% in the first quarter and dropped again in the second quarter.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.38 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. The company regressed in this liquidity measure from 1.4 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 1.1% to $2.34 billion while assets decreased 0.5% to $3.23 billion.

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

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