FMC Technologies Third Quarter Earnings on Deck

S&P 500 (NYSE:SPY) component FMC Technologies (NYSE:FTI) will unveil its latest earnings on Tuesday, October 23, 2012. FMC Technologies is a global provider of technologically sophisticated systems and products for the energy industry.

FMC Technologies Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 57 cents per share, a rise of 14% 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 58 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 57 cents during the last month. Analysts are projecting profit to rise by 29.8% versus last year to $2.09.

Past Earnings Performance: The company showed net income of 46 cents per share versus a mean estimate of profit of last quarter. This marks the fourth month of falling short of estimates.

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Wall St. Revenue Expectations: On average, analysts predict $1.57 billion in revenue this quarter, a rise of 21.7% from the year-ago quarter. Analysts are forecasting total revenue of $6.13 billion for the year, a rise of 20.2% from last year’s revenue of $5.1 billion.

A Look Back: In the second quarter, profit rose 18.7% to $111.9 million (46 cents a share) from $94.3 million (39 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 21.6% to $1.49 billion from $1.23 billion.

Stock Price Performance: Between July 24, 2012 and October 17, 2012, the stock price rose $5.60 (13.9%), from $40.27 to $45.87. The stock price saw one of its best stretches over the last year between November 23, 2011 and December 5, 2011, when shares rose for eight straight days, increasing 17.8% (+$8.11) over that span. It saw one of its worst periods between September 21, 2012 and September 28, 2012 when shares fell for six straight days, dropping 5% (-$2.46) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 30.2% over the last four quarters.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 21% for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.69 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 1.73 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 9.6% to $1.84 billion while assets rose 7.2% to $3.13 billion.

Analyst Ratings: There are 13 out of 25 analysts surveyed (52%) rating FMC Technologies a buy.

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

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