Forest Oil Corp Third Quarter Earnings Sneak Peek

Forest Oil Corporation (NYSE:FST) will unveil its latest earnings on Monday, October 29, 2012. Forest Oil is an independent oil and gas company engaged in the acquisition, exploration, development, and production of natural gas and liquids mainly North America.

Forest Oil Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 9 cents per share, a decline of 59.1% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. 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 profit of 40 cents per share, a decline of 54% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 3 cents, coming in at net income of 2 cents a share versus the estimate of profit of 5 cents a share. It was the fourth straight quarter of missing estimates.

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A Look Back: In the second quarter, the company swung to a loss of $511.2 million ($4.44 a share) from a profit of $38.9 million (34 cents) a year earlier, missing analyst expectations. Revenue fell 42.9% to $135.7 million from $237.8 million.

Stock Price Performance: Between July 30, 2012 and October 23, 2012, the stock price rose $1.33 (18.8%), from $7.06 to $8.39. The stock price saw one of its best stretches over the last year between July 12, 2012 and July 20, 2012, when shares rose for seven straight days, increasing 25.9% (+$1.48) over that span. It saw one of its worst periods between May 9, 2012 and May 18, 2012 when shares fell for eight straight days, dropping 22.6% (-$2.48) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 5.3% in revenue from the year-earlier quarter to $164.8 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 17.2% in the third quarter of the last fiscal year, 17.4% in fourth quarter of the last fiscal year and 21.5% in the first quarter and then fell again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.77 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

Analyst Ratings: There are mostly holds on the stock with nine of 16 analysts surveyed giving that rating.

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

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