Blackbaud Third Quarter Earnings Sneak Peek

Blackbaud, Inc. (NASDAQ:BLKB) will unveil its latest earnings on Tuesday, October 30, 2012. Blackbaud is a global provider of software and related services designed specifically for nonprofit organizations.

Blackbaud, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 16 cents per share, a decline of 36% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 26 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 16 cents during the last month. Analysts are projecting profit to rise by 27.5% versus last year to 66 cents.

Past Earnings Performance: The company showed profit of 9 cents per share versus a mean estimate of net income of last quarter. This marks the fourth month of falling short of estimates.

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A Look Back: In the second quarter, the company swung to a loss of $2.3 million (5 cents a share) from a profit of $8.9 million (20 cents) a year earlier, missing analyst expectations. Revenue rose 18% to $110.2 million from $93.4 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 32.2% in revenue from the year-earlier quarter to $126.3 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.42 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.77 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 93.6% to $413.5 million while assets rose 6.4% to $174.9 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 14.8% in the third quarter of the last fiscal year, 8.9% in the fourth quarter of the last fiscal year and 8.5% in the first quarter before increasing again in the second quarter.

Stock Price Performance: Between July 31, 2012 and October 24, 2012, the stock price fell $2.90 (-10.7%), from $26.98 to $24.08. It saw one of its worst periods between April 27, 2012 and May 17, 2012 when shares fell for 15 straight days, dropping 19.5% (-$6.18) over that span. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 13, 2012, when shares rose for six straight days, increasing 7% (+$2.15) over that span.

Analyst Ratings: There are mostly holds on the stock with three of four analysts surveyed giving that rating.

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

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