E Commerce China Dangdang Inc Second Quarter Earnings Sneak Peek

E Commerce China Dangdang Inc (ADR) (NYSE:DANG) will unveil its latest earnings on Thursday, August 16, 2012. E-Commerce China Dangdang, through its subsidiaries, operates the Chinese e-commerce website Dangdang, an online bookstore and general merchandise retailer.

E Commerce China Dangdang Inc (ADR) Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 22 cents per share, a wider loss from the year-earlier quarter net loss of 6 cents. During the past three months, the average estimate has moved up from a loss of 24 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at a loss of 22 cents during the last month.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the first quarter, the company reported net loss of 20 cents per share versus a mean estimate of a loss of 23 cents per share. In the fourth quarter of the last fiscal year, the company missed estimates by 8 cents.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

A Look Back: In the first quarter, the company swung to a loss of $15.8 million (20 cents a share) from a profit of $469,573 (one cent) a year earlier, but beat analyst expectations. Revenue rose 63.9% to $172.1 million from $105 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 52.5% in revenue from the year-earlier quarter to $186.6 million.

Stock Price Performance: Between May 16, 2012 and August 10, 2012, the stock price fell $2.11 (-28.2%), from $7.49 to $5.38. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 20, 2012, when shares rose for five straight days, increasing 27.2% (+$1.61) over that span. It saw one of its worst periods between December 8, 2011 and December 19, 2011 when shares fell for eight straight days, dropping 25.3% (-$1.41) over that span.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 80.4% in the fourth quarter of the last fiscal year before climbing again in the first quarter.

Analyst Ratings: With three analysts rating the stock as a buy, one rating it as a sell and four rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.42 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 regressed in this liquidity measure from 1.5 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.6% to $363.8 million while assets rose 2.2% to $516.9 million.

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)

Don’t Miss These Additional Hot Stories:

Is There Too Much Hope for These Stocks in the Housing Rebound?

Investors and Traders: Here are the BIGGEST IMMEDIATE WINNERS This Earnings Season

Is Caterpillar’s Stock a BUY?

More from The Cheat Sheet