Range Resources Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Range Resources Corp. (NYSE:RRC) will unveil its latest earnings on Tuesday, July 24, 2012. Range Resources is an independent natural gas company that primarily explores and develops gas properties in the Southwestern and Appalachian regions of the United States.

Range Resources Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of one cent per share, a swing from net income of 27 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from 9 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 3 cents during the last month. Analysts are projecting profit to rise by 23.5% versus last year to 42 cents.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 9 cents, reporting profit of 15 cents per share against a mean estimate of net income of 6 cents per share.

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A Look Back: In the first quarter, the company’s loss widened to a loss of a $41.8 million (26 cents a share) from a loss of $25 million (16 cents) a year earlier, but beat analyst expectations. Revenue rose 40% to $318.2 million from $227.2 million.

Stock Price Performance: Between July 12, 2012 and July 18, 2012, the stock price rose $5.29 (9.2%), from $57.50 to $62.79. The stock price saw one of its best stretches over the last year between April 20, 2012 and May 1, 2012, when shares rose for eight straight days, increasing 18.5% (+$10.65) over that span. It saw one of its worst periods between May 23, 2012 and June 1, 2012 when shares fell for seven straight days, dropping 15.2% (-$9.78) over that span.

Wall St. Revenue Expectations: On average, analysts predict $321.2 million in revenue this quarter, a rise of 4.7% from the year-ago quarter. Analysts are forecasting total revenue of $1.37 billion for the year, a rise of 12.3% from last year’s revenue of $1.22 billion.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 39.9% over the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.83 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 0.62 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 46.8% to $462.9 million while liabilities rose by 8.3% to $554.5 million.

Analyst Ratings: There are 15 out of 28 analysts surveyed (53.6%) rating Range Resources a buy.

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

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