Advisory Board: Here’s What Investors Need to Know Before Earnings

Advisory Board (NASDAQ:ABCO) will report earnings after markets close on Thursday, May 9th. The Advisory Board Company provides best practice research and analysis to the health care industry. The Company focuses on business strategy, operations, and general management issues. Advisory provides its services through discrete annual programs to a membership of hospitals, health systems, pharmaceutical and biotechnology companies, health care insurers, and medical device companies.

Here is your Cheat Sheet to Advisory Board Earnings:

Earnings Expectations: Analysts expect earnings of $0.29 per share on revenues of $117.86 million. Currently, the company’s P/E ratio stands at 74.16.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.34 to a profit $0.3. For the current year, the average estimate is a profit of $1.2, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Advisory Board has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 218.97 230.36 239.32 283.44 370.34
Diluted EPS ($) 0.86 0.65 0.365 0.565 0.73

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 98.46 100.48 104.14 110.76 116.23
Diluted EPS ($) 0.23 0.2298 0.11 0.21 0.12

Past Performance:
Advisory Board has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]