Compuware Third Quarter Earnings Sneak Peek

Compuware Corporation (NASDAQ:CPWR) will unveil its latest earnings tomorrow, Tuesday, January 22, 2013. Compuware provides software products and professional services that improve the performance of information technology organizations.

Compuware Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 11 cents per share, a rise of 10% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 14 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 11 cents during the last month. Analysts are projecting profit to rise by 5% compared to last year’s 38 cents.

Past Earnings Performance: Last quarter, the company fell short of estimates by one cent, coming in at net income of 5 cents per share against a mean estimate of profit of 6 cents. The company topped expectations in the first quarter.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

A Look Back: In the second quarter, profit fell 53.3% to $10.6 million (5 cents a share) from $22.7 million (10 cents a share) the year earlier, missing analyst expectations. Revenue fell 15.4% to $220.6 million from $260.7 million.

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


Analyst Ratings: There are mostly holds on the stock with three of five analysts surveyed giving that rating.

Wall St. Revenue Expectations: Analysts are projecting a rise of 0.5% in revenue from the year-earlier quarter to $254.2 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 1.7% in the first quarter and dropped again in the second quarter.

Heading into this earnings announcement, net income has dropped 37.6% on average for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.01 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.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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