Bankrate Inc Third Quarter Earnings Sneak Peek

Bankrate Inc (NYSE:RATE) will unveil its latest earnings on Thursday, November 1, 2012.

Bankrate Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 11 cents per share, a decline of 21.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 21 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 19 cents during the last month. For the year, analysts are projecting profit of 54 cents per share, no change from last year.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the second quarter, it missed the mark by one cent as a result of reporting net income of 16 cents against an estimate of profit of 17 cents per share. In the first quarter, the company fell short of forecasts by 2 cents.

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A Look Back: In the second quarter, the company swung to a profit of $16.3 million (16 cents a share) from a loss of $39.7 million (44 cents) a year earlier, but missed analyst estimates. Revenue rose 24% to $122.1 million from $98.4 million.

Stock Price Performance: Between August 2, 2012 and October 26, 2012, the stock price fell $6.83 (-39%), from $17.53 to $10.70. The stock price saw one of its best stretches over the last year between December 21, 2011 and January 3, 2012, when shares rose for eight straight days, increasing 15.7% (+$3.04) over that span. It saw one of its worst periods between October 8, 2012 and October 25, 2012 when shares fell for 14 straight days, dropping 33.7% (-$5.44) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.85 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. The company regressed in this liquidity measure from 3.18 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 25.4% to $60.2 million while assets rose 12.3% to $171.5 million.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 47.2% in the fourth quarter of the last fiscal year and 26.2% in the first quarter before climbing again in the second quarter.

Wall St. Revenue Expectations: Analysts are projecting a rise of 3% in revenue from the year-earlier quarter to $116.3 million.

Analyst Ratings: There are four out of seven analysts surveyed (57.1%) rating Bankrate a buy.

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

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