Acme Packet, Inc. Third Quarter Earnings Sneak Peek

Acme Packet, Inc. (NASDAQ:APKT) will unveil its latest earnings on Thursday, October 20, 2011. Acme Packet provides session border controllers that enable service providers to deliver secure interactive communications–voice, video, and other real-time multimedia sessions–across Internet Protocol network borders.

Acme Packet, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 14 cents per share, a decline of 6.7% 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 22 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. For the year, analysts are projecting profit of 82 cents per share, a rise of 26.2% from last year.

Past Earnings Performance: Last quarter, the company saw net income of 21 cents per share versus a mean estimate of profit of 21 cents per share. This comes after two consecutive quarters of exceeding expectations.

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Wall St. Revenue Expectations: On average, analysts predict $71 million in revenue this quarter, a rise of 25.4% from the year ago quarter. Analysts are forecasting total revenue of $318.6 million for the year, a rise of 37.8% from last year’s revenue of $231.2 million.

Analyst Ratings: Analysts are bullish on Acme Packet as six analysts rate it as a buy, one rates it as a sell and five rate it as a hold.

A Look Back: In the second quarter, profit rose 44% to $14 million (20 cents a share) from $9.7 million (14 cents a share) the year earlier, meeting analyst expectations. Revenue rose 49.5% to $79.7 million from $53.3 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 55.1%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 70.2% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 64.5% in the first quarter and 59.9% in the fourth quarter of the last fiscal year.

Competitors to Watch: Sonus Networks, Inc. (NASDAQ:SONS), Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC), Riverbed Technology, Inc. (NASDAQ:RVBD), Nokia Corporation (NYSE:NOK), Alcatel-Lucent (NYSE:ALU), Cisco Systems, Inc. (NASDAQ:CSCO), Ditech Networks Inc. (NASDAQ:DITC), Oracle Corporation (NASDAQ:ORCL), Motorola Solutions Inc (NYSE:MSI), and Motorola Mobility Hldgs. Inc (NYSE:MMI).

Stock Price Performance: During July 21, 2011 to October 14, 2011, the stock price had fallen $18.85 (-31.4%) from $60.10 to $41.25. The stock price saw one of its best stretches over the last year between March 22, 2011 and March 29, 2011 when shares rose for six-straight days, rising 11.7% (+$7.60) over that span. It saw one of its worst periods between September 26, 2011 and October 3, 2011 when shares fell for six-straight days, falling 14.6% (-$6.89) over that span. Shares are down $11.91 (-22.4%) year to date.

(Source: Xignite Financials)

Investing Insights: has a Stock Chart Technical Analysts Dream About.