Blackbaud Second Quarter Earnings PREVIEW

Blackbaud, Inc. (NASDAQ:BLKB) will unveil its latest earnings on Tuesday, August 7, 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 17 cents per share, a decline of 26.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 22 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 17 cents during the last month. Analysts are projecting profit to rise by 4.4% compared to last year’s 87 cents.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the first quarter, it missed the mark by 3 cents as a result of reporting profit of 12 cents against an estimate of net income of 15 cents per share. In the fourth quarter of the last fiscal year, the company fell short of forecasts by 3 cents.

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A Look Back: In the first quarter, profit fell 63.6% to $2.8 million (6 cents a share) from $7.6 million (17 cents a share) the year earlier, missing analyst expectations. Revenue rose 8.5% to $94.7 million from $87.3 million.

Stock Price Performance: Between May 7, 2012 and August 1, 2012, the stock price fell $2.63 (-9.2%), from $28.59 to $25.96. 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.

Wall St. Revenue Expectations: Analysts predict a rise of 8.2% in revenue from the year-earlier quarter to $101.1 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 15.8% in the second quarter of the last fiscal year, 14.8% in the third quarter of the last fiscal year and 8.9% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 18.7% in the fourth quarter of the last fiscal year and then again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.77 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.

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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