Cooper Industries Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Cooper Industries plc (NYSE:CBE) will unveil its latest earnings on Friday, October 19, 2012. Cooper Industries is a worldwide manufacturer of electrical products and tools.

Cooper Industries plc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.14 per share, a rise of 16.3% 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 $1.13. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.14 during the last month. Analysts are projecting profit to rise by 14.5% compared to last year’s $4.43.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at profit of $1.13 a share versus the estimate of net income of $1.12 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit rose 17.1% to $189 million ($1.17 a share) from $161.4 million (96 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 7.4% to $1.47 billion from $1.37 billion.

Stock Price Performance: Between July 20, 2012 and October 15, 2012, the stock price rose $5.53 (8.1%), from $68.19 to $73.72. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 10, 2012, when shares rose for seven straight days, increasing 3.4% (+$2.45) over that span. It saw one of its worst periods between July 3, 2012 and July 12, 2012 when shares fell for seven straight days, dropping 3.9% (-$2.71) over that span.

Wall St. Revenue Expectations: On average, analysts predict $1.49 billion in revenue this quarter, a rise of 7.2% from the year-ago quarter. Analysts are forecasting total revenue of $5.82 billion for the year, a rise of 7.6% from last year’s revenue of $5.41 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 12% in the third quarter of the last fiscal year, 9% in the fourth quarter of the last fiscal year and 9.9% in the first quarter before increasing again in the second quarter.

Heading into this earnings announcement, net income has dropped 2.7% on average for the last four quarters.

Analyst Ratings: There are mostly holds on the stock with 10 of 12 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.66 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. The company improved this liquidity measure from 1.62 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 6.9% to $2.51 billion while liabilities rose by 4.4% to $1.51 billion.

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

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