S&P 500 (NYSE:SPY) component Denbury Resources (NYSE:DNR) will unveil its latest earnings on Thursday, August 2, 2012. Denbury Resources is an independent oil and gas company that acquires and develops oil and natural gas properties in the United States Gulf Coast region.
Denbury Resources Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 33 cents per share, a decline of 8.3% 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 39 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 36 cents during the last month. Analysts are projecting profit to rise by 4.9% compared to last year’s $1.36.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting profit of 41 cents per share against a mean estimate of net income of 38 cents per share.
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A Look Back: In the first quarter, the company swung to a profit of $113.5 million (29 cents a share) from a loss of $14.2 million (4 cents) a year earlier, beating analyst estimates. Revenue rose 26.2% to $645.1 million from $511.1 million.
Stock Price Performance: Between May 2, 2012 and July 27, 2012, the stock price fell $3.45 (-17.9%), from $19.25 to $15.80. The stock price saw one of its best stretches over the last year between June 25, 2012 and June 29, 2012, when shares rose for five straight days, increasing 12.3% (+$1.65) over that span. It saw one of its worst periods between July 28, 2011 and August 8, 2011 when shares fell for eight straight days, dropping 25.5% (-$4.99) over that span.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.25 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 enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 22% over the last four quarters.
Analyst Ratings: With 13 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.
Wall St. Revenue Expectations: On average, analysts predict $611.3 million in revenue this quarter, a rise of 1.6% from the year-ago quarter. Analysts are forecasting total revenue of $2.5 billion for the year, a rise of 8.2% from last year’s revenue of $2.31 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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