SPX Corporation (NYSE:SPW) will unveil its latest earnings on Wednesday, August 1, 2012. SPX is a global multi-industry manufacturing company offering highly-specialized engineered solutions to solve critical problems for customers.
SPX Corporation Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 75 cents per share, a decline of 17.6% 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 $1.01. Between one and three months ago, the average estimate moved down. It also has dropped from 77 cents during the last month. For the year, analysts are projecting net income of $4.24 per share, a decline of 3.2% from last year.
Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at profit of 23 cents a share versus the estimate of net income of 22 cents a share. It marked the fourth straight quarter of beating estimates.
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A Look Back: In the first quarter, profit fell 41.6% to $13.5 million (26 cents a share) from $23.1 million (45 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 2.8% to $1.17 billion from $1.2 billion.
Stock Price Performance: Between May 1, 2012 and July 26, 2012, the stock price fell $15.81 (-20.7%), from $76.41 to $60.60. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 12, 2011, when shares rose for eight straight days, increasing 23.5% (+$9.86) over that span. It saw one of its worst periods between July 27, 2011 and August 8, 2011 when shares fell for nine straight days, dropping 30.4% (-$23.21) over that span.
Wall St. Revenue Expectations: Analysts predict a decline of 5.8% in revenue from the year-earlier quarter to $1.3 billion.
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 16.3% in the second quarter of the last fiscal year, 7.6% in the third quarter of the last fiscal year and 12.9%in the fourth quarter of the last fiscal year before dropping in the first quarter.
The company is trying to use this earnings announcement to rebound from income declines in the past two quarters. Net income dropped 4.3% in the fourth quarter of the last fiscal year and then again in the first quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.4 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. The company regressed in this liquidity measure from 1.49 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 19% to $2.32 billion while assets rose 12.2% to $3.25 billion.
Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and two 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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