S&P 500 (NYSE:SPY) component Cameron International (NYSE:CAM) will unveil its latest earnings on Wednesday, October 31, 2012. Cameron International is a manufacturer of oil and gas pressure control and separation equipment, including valves, blowout preventers, wellheads, controls, and chokes.
Cameron International Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of 88 cents per share, a rise of 12.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 90 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 88 cents during the last month. For the year, analysts are projecting net income of $3.24 per share, a rise of 21.3% from last year.
Last quarter, the company came in at profit of 74 cents per share against a mean estimate of net income of 72 cents per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by one cent.
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Wall St. Revenue Expectations: Analysts predict a rise of 29.6% in revenue from the year-earlier quarter to $2.19 billion.
A Look Back: In the second quarter, profit rose 18% to $174.6 million (70 cents a share) from $148 million (59 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 18% to $2.05 billion from $1.74 billion.
Stock Price Performance: Between September 27, 2012 and October 25, 2012, the stock price dropped $5.46 (-9.7%), from $56.54 to $51.08. It saw one of its worst periods between May 1, 2012 and May 9, 2012 when shares fell for seven straight days, dropping 9.4% (-$4.91) over that span. 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 7.9% (+$3.35) over that span.
With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 15.2% over the last four quarters.
After experiencing income increases the last two quarters, the company is hoping to keep the momentum going with this earnings announcement. In the first quarter, profit rose 22.4% before increasing in the second quarter.
Analyst Ratings: With 18 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 2.3 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 improved this liquidity measure from 2.29 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 8.2% to $6.08 billion while liabilities rose by 7.4% to $2.64 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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