Cabot Oil & Gas Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cabot Oil & Gas Corporation (NYSE:COG) will unveil its latest earnings on Thursday, October 25, 2012. Cabot Oil & Gas is an independent company engaged in the development, exploitation, and exploration of oil and gas properties in North America.

Cabot Oil & Gas Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 14 cents per share, no change from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 10 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 14 cents during the last month. Analysts are projecting profit to rise by 30.9% versus last year to 38 cents.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the second quarter, it missed the mark by 5 cents as a result of reporting net income of 2 cents against an estimate of profit of 7 cents per share. In the first quarter, the company fell short of forecasts by 3 cents.

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A Look Back: In the second quarter, profit fell 34.3% to $35.9 million (17 cents a share) from $54.7 million (26 cents a share) the year earlier, missing analyst expectations. Revenue rose 10.4% to $265.7 million from $240.7 million.

Wall St. Revenue Expectations: On average, analysts predict $298.8 million in revenue this quarter, a rise of 14% from the year-ago quarter. Analysts are forecasting total revenue of $1.18 billion for the year, a rise of 20.4% from last year’s revenue of $979.9 million.

Stock Price Performance: Between August 23, 2012 and October 19, 2012, the stock price had risen $3.84 (9.4%), from $40.64 to $44.48. The stock price saw one of its best stretches over the last year between April 24, 2012 and May 1, 2012, when shares rose for six straight days, increasing 21.4% (+$6.33) over that span. It saw one of its worst periods between May 23, 2012 and June 4, 2012 when shares fell for eight straight days, dropping 14.3% (-$5.21) over that span.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 20.9% over the last four quarters.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 42.2% in the first quarter before dropping in the second quarter.

Analyst Ratings: There are 12 out of 19 analysts surveyed (63.2%) rating Cabot Oil & Gas a buy. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.87 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 1.05 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 12.9% to $295.9 million while liabilities rose by 5.8% to $340.9 million.

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

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