Stock Price Performance: Between November 15, 2012 and January 15, 2013, the stock price had risen $77.67 (12%), from $647.26 to $724.93. The stock price saw one of its best stretches over the last year between September 12, 2012 and September 24, 2012, when shares rose for nine straight days, increasing 8.5% (+$58.50) over that span. It saw one of its worst periods between December 20, 2012 and December 28, 2012 when shares fell for six straight days, dropping 3.1% (-$22.35) over that span.
The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 32.5% over the last four quarters.
After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 6.3% in the fourth quarter of the last fiscal year, 60.7% in the first quarter and 11.2% in the second quarter before declining in the third quarter.
Analyst Ratings: With 24 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.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.94 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 3.84 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 5.5% to $56.82 billion while liabilities rose by 2.9% to $14.43 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)