DuPont Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component EI du Pont de Nemours (NYSE:DD) will unveil its latest earnings tomorrow, Tuesday, January 22, 2013. E.I. du Pont de Nemours & Company offers products and services for markets including agriculture and food, building and construction, electronics and communications, general industrial, and transportation.

EI du Pont de Nemours Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 9 cents per share, a decline of 74.3% from the company’s actual earnings for the year-ago quarter. 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 has risen from 8 cents during the last month. For the year, analysts are projecting net income of $3.36 per share, a decline of 14.5% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 2 cents, coming in at profit of 44 cents per share versus a mean estimate of net income of 46 cents per share. In the second quarter, the company beat estimates by 2 cents.

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A Look Back: In the third quarter, profit fell 97.8% to $10 million (one cent a share) from $452 million (48 cents a share) the year earlier, missing analyst expectations. Revenue fell 20.6% to $7.34 billion from $9.24 billion.

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

DD

Wall St. Revenue Expectations: Analysts predict a decline of 13.3% in revenue from the year-earlier quarter to $7.3 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.58 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 1.62 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 14.2% to $14.2 billion while assets rose 11.4% to $22.42 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 8.8% in the fourth quarter of the last fiscal year, 11.9% in the first quarter and 9.6%in the second quarter before dropping in the third quarter.

An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 3.2% in the second quarter and then again in the third quarter.

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

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