Polypore International Second Quarter Earnings Sneak Peek

Polypore International, Inc. (NYSE:PPO) will unveil its latest earnings on Tuesday, July 31, 2012. Polypore International is a global technology filtration company that develops, manufactures, and markets specialized microporous membranes used in separation and filtration processes.

Polypore International, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 47 cents per share, a decline of 25.4% 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 52 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 48 cents during the last month. For the year, analysts are projecting net income of $2.13 per share, a decline of 2.3% from last year.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by 2 cents in the fourth quarter of the last fiscal year, the company fell in line with expectations by reporting profit of 37 cents per share last quarter.

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A Look Back: In the first quarter, profit fell 26.9% to $18.8 million (40 cents a share) from $25.7 million (55 cents a share) the year earlier, meeting analyst expectations. Revenue fell 6.4% to $173.7 million from $185.7 million.

Stock Price Performance: Between May 29, 2012 and July 25, 2012, the stock price had fallen $3.98 (-10.3%), from $38.63 to $34.65. The stock price saw one of its best stretches over the last year between March 5, 2012 and March 13, 2012, when shares rose for seven straight days, increasing 6.8% (+$2.45) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 13.5% (-$7.87) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 5.4% in revenue from the year-earlier quarter to $185.8 million.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 30.8% in the second quarter of the last fiscal year, 25.3% in the third quarter of the last fiscal year and 12.6%in the fourth quarter of the last fiscal year before dropping in the first quarter.

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 85.1% in the second quarter of the last fiscal year, 90.8% in the third quarter of the last fiscal year and 49.3% in the fourth quarter of the last fiscal year before declining in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.52 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.

Analyst Ratings: There are seven out of 10 analysts surveyed (70%) rating Polypore International a buy.

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

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