Analyst Ratings: With seven analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.93 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 improved this liquidity measure from 0.85 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 15.4% to $5.93 billion while liabilities rose by 4.4% to $6.35 billion.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 5% in the fourth quarter of the last fiscal year, 1.3% in the first quarter and 62.1% in the second quarter before increasing again in the third quarter.
The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 3.8% in the first quarter and more than twofold in the second quarter before dropping in the third quarter.
Wall St. Revenue Expectations: Analysts predict a decline of 0.5% in revenue from the year-earlier quarter to $4.33 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)