Invesco Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Invesco (NYSE:IVZ) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Invesco is a global investment management company providing retail, institutional and high-net-worth clients around the world with innovative solutions.

Invesco Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 47 cents per share, a rise of 11.9% 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 48 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 3.6% compared to last year’s $1.74.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the third quarter, it missed the mark by 2 cents as a result of reporting net income of 42 cents against an estimate of profit of 44 cents per share. In the second quarter, the company fell short of forecasts by 2 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 8.8% in revenue from the year-earlier quarter to $1.11 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.31 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 1.35 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 16.9% to $3.18 billion while assets rose 13.3% to $4.16 billion.

A Look Back: In the third quarter, profit rose 2.2% to $170.6 million (38 cents a share) from $166.9 million (36 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 4.4% to $1.04 billion from $997.8 million.

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

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Key Stats:

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 2.8% for the last four quarters.

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 5.7% in the second quarter after increasing in the third quarter.

Analyst Ratings: With 14 analysts rating the stock a buy, none rating it a sell and four 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)