EQT Corp Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component EQT Corporation (NYSE:EQT) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. EQT offers energy products including natural gas, NGLs, and a limited amount of crude oil and services to wholesale and retail customers in the United States.

EQT Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 43 cents per share, a decline of 28.3% 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 46 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 43 cents during the last month. Analysts are projecting profit to rise by 37.5% versus last year to $1.40.

Past Earnings Performance: The company showed profit of 21 cents per share versus a mean estimate of net income of last quarter. This marks the fourth month of falling short of estimates.

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

eqt

A Look Back: In the third quarter, profit fell 82.2% to $31.9 million (21 cents a share) from $178.9 million ($1.19 a share) the year earlier, missing analyst expectations. Revenue rose 8.1% to $364.1 million from $336.7 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 14% in revenue from the year-earlier quarter to $421.9 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.5 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 1.74 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 17.6% to $818.9 million while assets rose 1.2% to $1.23 billion.

Key Stats:

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 41.1% in the first quarter, by 64.2% in the second quarter and again in the third quarter.

The company is looking to build on last quarter’s top line growth, which snapped a string of revenue declines. Revenue fell 1.3% in the first quarter and 3.2% in the second quarter before climbing in the third quarter.

Stock Price Performance: Between November 19, 2012 and January 17, 2013, the stock price had fallen $2.37 (-3.9%), from $61.43 to $59.06. The stock price saw one of its best stretches over the last year between August 14, 2012 and August 21, 2012, when shares rose for six straight days, increasing 2.8% (+$1.54) over that span. It saw one of its worst periods between April 3, 2012 and April 11, 2012 when shares fell for six straight days, dropping 7% (-$3.45) over that span.

Analyst Ratings: With 11 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

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