Chiquita Brands Intl Third Quarter Earnings Sneak Peek

Chiquita Brands International, Inc. (NYSE:CQB) will unveil its latest earnings on Wednesday, November 7, 2012. Chiquita Brands International and its subsidiaries operate as an international marketer and distributor of bananas and other fresh produce sold under the Chiquita and other brand.

Chiquita Brands International, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 25 cents per share, a narrower loss from the year-earlier quarter net loss of 39 cents. During the past three months, the average estimate has moved up from a loss of 28 cents. Between one and three months ago, the average estimate moved up. It has risen from a loss of 26 cents during the last month. For the year, analysts are projecting net loss of 17 cents per share, a swing from profit of 83 cents last year.

Past Earnings Performance: The company is looking to top analyst estimates this quarter after trailing for the two previous quarters. Last quarter, it missed estimates by reporting net income of 27 cents per share against an estimate of profit of 36 cents per share. The quarter before that, it missed expectations by 36 cents.

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A Look Back: In the second quarter, profit fell 92.9% to $5.5 million (12 cents a share) from $77.8 million ($1.68 a share) the year earlier, missing analyst expectations. Revenue fell 4.3% to $833.2 million from $870.4 million.

Stock Price Performance: Between August 8, 2012 and November 1, 2012, the stock price rose $1.78 (31.7%), from $5.62 to $7.40. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 9, 2012, when shares rose for six straight days, increasing 19.4% (+94 cents) over that span. It saw one of its worst periods between February 23, 2012 and March 2, 2012 when shares fell for seven straight days, dropping 9.4% (-97 cents) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 6.7% in revenue from the year-earlier quarter to $674.7 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 1% in the third quarter of the last fiscal year, 6.6% in fourth quarter of the last fiscal year and 3.8% in the first quarter and then fell again in the second quarter.

Heading into this earnings season, the company is looking to build on positive signs from last quarter. After taking losses in the third quarter of the last fiscal year, the fourth of the last fiscal year and the first quarter, the company finished in the black with income of $5.5 million in the second.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.8 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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

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