Cabelas Inc. Third Quarter Earnings Sneak Peek

Cabelas Inc (NYSE:CAB) will unveil its latest earnings on Thursday, October 25, 2012. Cabela’s is a specialty retailer and a direct marketer of hunting, fishing, camping, and related outdoor merchandise.

Cabelas Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 60 cents per share, a rise of 20% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 59 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 60 cents during the last month. For the year, analysts are projecting profit of $2.70 per share, a rise of 27.4% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 8 cents, reporting net income of 47 cents per share against a mean estimate of profit of 39 cents per share.

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A Look Back: In the second quarter, profit rose 56.1% to $33.9 million (47 cents a share) from $21.7 million (31 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 11.6% to $627.3 million from $562.1 million.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $10.24 (22.8%), from $44.91 to $55.15. The stock price saw one of its best stretches over the last year between July 12, 2012 and July 19, 2012, when shares rose for six straight days, increasing 5.9% (+$2.27) over that span. It saw one of its worst periods between June 20, 2012 and June 28, 2012 when shares fell for seven straight days, dropping 7.7% (-$2.92) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 10.9% in revenue from the year-earlier quarter to $752.8 million.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 5.3% in the fourth quarter of the last fiscal year and 62.1% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 5.5% in the third quarter of the last fiscal year, 5.3% in the fourth quarter of the last fiscal year and 6.3% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 4.72 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.

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

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