Headwaters First Quarter Earnings Sneak Peek

Headwaters Inc (NYSE:HW) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. Headwaters provides products, technologies and services in three industries: light building products, heavy construction materials and energy technology.

Headwaters Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 5 cents per share, a narrower loss from the year-earlier quarter net loss of 13 cents. During the past three months, the average estimate has moved down from a loss of 4 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 5 cents during the last month. For the year, analysts are projecting profit of 21 cents per share, a swing from net loss of 41 cents last year.

Past Earnings Performance: Last quarter, the company missed estimates by 3 cents, coming in at net income of 5 cents per share versus a mean estimate of profit of 8 cents per share. In the third quarter of the last fiscal year, the company beat estimates by one cent.

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A Look Back: In the fourth quarter of the last fiscal year, the company’s loss narrowed to a loss of $4.9 million (8 cents a share) from a loss of $46.7 million (77 cents) a year earlier, but missed analyst expectations. Revenue rose 37.9% to $190.1 million from $137.9 million.

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

hw

Wall St. Revenue Expectations: Analysts are projecting a rise of 7.7% in revenue from the year-earlier quarter to $148 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.52 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 1.56 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 28% to $141.2 million while assets rose 25.1% to $214.7 million.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 2% in the second quarter of the last fiscal year and 2% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With four analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

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