Integrys Energy Group Second Quarter Earnings PREVIEW

S&P 500 (NYSE:SPY) component Integrys Energy Group (NYSE:TEG) will unveil its latest earnings on Wednesday, August 8, 2012. Integrys Energy Group is a holding company whose subsidiaries provide products and services in energy markets.

Integrys Energy Group Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 39 cents per share, a rise of 2.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 38 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. For the year, analysts are projecting net income of $3.43 per share, a rise of 1.5% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 4 cents, coming in at profit of $1.55 per share against a mean estimate of net income of $1.57. The company topped expectations in the fourth quarter of the last fiscal year.

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A Look Back: In the first quarter, profit fell 19.3% to $99.7 million ($1.25 a share) from $123.5 million ($1.56 a share) the year earlier, missing analyst expectations. Revenue fell 23.1% to $1.25 billion from $1.63 billion.

Stock Price Performance: Between May 8, 2012 and August 2, 2012, the stock price rose $6.62 (12.4%), from $53.58 to $60.20. The stock price saw one of its best stretches over the last year between July 9, 2012 and July 20, 2012, when shares rose for 10 straight days, increasing 4.9% (+$2.82) over that span. It saw one of its worst periods between April 2, 2012 and April 11, 2012 when shares fell for seven straight days, dropping 4.1% (-$2.19) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 5% in revenue from the year-earlier quarter to $1.06 billion.

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 0.4% in the second quarter of the last fiscal year, 5.9% in third quarter of the last fiscal year and 12% in the fourth quarter of the last fiscal year and then fell again in the first quarter.

An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 46% in the fourth quarter of the last fiscal year and then again in the first quarter.

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

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.95 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. The company regressed in this liquidity measure from 1.1 in the fourth quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 9.4% to $1.63 billion while liabilities rose by 4.2% to $1.72 billion.

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

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