Acme Packet Third Quarter Earnings Sneak Peek

Acme Packet, Inc. (NASDAQ:APKT)¬†will unveil its latest earnings tomorrow, Monday, February 4, 2013. 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 analyst estimate is for a loss of 5 cents per share, a spike from profit of 13 cents in the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net loss of 10 cents per share, a swing from net income of 65 cents last year.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the second quarter, it reported a loss of 7 cents per share versus a mean estimate of 4 cents. Two quarters ago, it reported profit of 2 cents per share.

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A Look Back: In the second quarter, the company swung to a loss of $127,000 (0 cents a share) from a profit of $14 million (20 cents) a year earlier, missing analyst expectations. Revenue fell 15.2% to $67.6 million from $79.7 million..

Here’s how Acme Packet traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

apkt

Stock Price Performance: Between October 31, 2012 and January 29, 2013, the stock price rose $6.78 (41%), from $16.54 to $23.32. The stock price saw one of its best stretches over the last year between December 5, 2012 and December 14, 2012, when shares rose for eight straight days, increasing 18% (+$3.48) over that span. It saw one of its worst periods between December 18, 2012 and December 28, 2012 when shares fell for eight straight days, dropping 6.3% (-$1.43) over that span.

Wall St. Revenue Expectations: On average, analysts predict $68.8 million in revenue this quarter, a decline of 17.1% from the year-ago quarter. Analysts are forecasting total revenue of $272.2 million for the year, a decline of 11.4% from last year’s revenue of $307.3 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 4.2% in the first quarter and dropped again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 9.04 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 mostly holds on the stock with 14 of 19 analysts surveyed giving that rating.

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