Compuware First Quarter Earnings Sneak Peek

Compuware Corporation (NASDAQ:CPWR) will unveil its latest earnings on Tuesday, July 24, 2012. Compuware provides software products and professional services that improve the performance of information technology organizations.

Compuware Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 4 cents per share, a decline of 50% 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 8 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 4 cents during the last month. For the year, analysts are projecting profit of 46 cents per share, a rise of 15% from last year.

Past Earnings Performance: The company fell in line with estimates last quarter after missing in the prior quarter. After falling short of the mean estimate by one cent in the third quarter of the last fiscal year, the company fell in line with expectations by reporting net income of 12 cents last quarter.

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A Look Back: In the fourth quarter of the last fiscal year, profit fell 22.1% to $27.1 million (12 cents a share) from $34.8 million (16 cents a share) the year earlier, meeting analyst expectations. Revenue rose 6.6% to $266 million from $249.6 million.

Stock Price Performance: Between May 21, 2012 and July 18, 2012, the stock price had risen 71 cents (8.6%), from $8.30 to $9.01. The stock price saw one of its best stretches over the last year between January 30, 2012 and February 14, 2012, when shares rose for 12 straight days, increasing 12.2% (+95 cents) over that span. It saw one of its worst periods between March 26, 2012 and April 4, 2012 when shares fell for eight straight days, dropping 5.8% (-55 cents) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.09 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.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.4% in the first quarter of the last fiscal year, 15.4% in the second quarter of the last fiscal year and 2.4% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

An income boost this time around would be welcome news after profit drops in the past three quarters. Net income fell 12.7% in the second quarter of the last fiscal year, by 36.5% in the third quarter of the last fiscal year and again in the fourth quarter of the last fiscal year.

Wall St. Revenue Expectations: On average, analysts predict $236.3 million in revenue this quarter, a rise of 2.8% from the year-ago quarter. Analysts are forecasting total revenue of $1.06 billion for the year, a rise of 5% from last year’s revenue of $1.01 billion.

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

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

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