Cameron International Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cameron International (NYSE:CAM) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Cameron International is a manufacturer of oil and gas pressure control and separation equipment, including valves, blowout preventers, wellheads, controls, and chokes.

Cameron International Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 96 cents per share, a rise of 24.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.08. Between one and three months ago, the average estimate moved down. It has been unchanged at 96 cents during the last month. Analysts are projecting profit to rise by 18% versus last year to $3.15.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 91 cents per share against a mean estimate of net income of 88 cents, and the quarter before, the company exceeded forecasts by 2 cents with profit of 74 cents versus a mean estimate of net income of 72 cents.

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A Look Back: In the third quarter, profit rose 35.9% to $223.6 million (90 cents a share) from $164.5 million (67 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 31.6% to $2.22 billion from $1.69 billion.

Here’s how Cameron International traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Wall St. Revenue Expectations: Analysts predict a rise of 17.2% in revenue from the year-earlier quarter to $2.38 billion.

Analyst Ratings: With 20 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 20.5% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 22.4% in the first quarter and 18% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.34 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 improved this liquidity measure from 2.3 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 5.9% to $6.44 billion while liabilities rose by 4.2% to $2.75 billion.

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