S&P 500 (NYSE:SPY) component Invesco (NYSE:IVZ) will unveil its latest earnings on Thursday, July 26, 2012. 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 analyst estimate is for profit of 43 cents per share, a decline of 2.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 48 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 45 cents during the last month. Analysts are projecting profit to rise by 8.3% compared to last year’s $1.82.
Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported net income of 44 cents per share versus a mean estimate of profit of 44 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by one cent.
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Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price fell $2.91 (-11.9%), from $24.45 to $21.54. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 13, 2012, when shares rose for six straight days, increasing 8.8% (+$2.11) over that span. It saw one of its worst periods between May 1, 2012 and May 10, 2012 when shares fell for eight straight days, dropping 9.7% (-$2.44) over that span.
A Look Back: In the first quarter, profit rose 9.2% to $193.9 million (43 cents a share) from $177.5 million (38 cents a share) the year earlier, meeting analyst expectations. Revenue rose 0.6% to $1.03 billion from $1.03 billion.
Wall St. Revenue Expectations: Analysts are projecting a decline of 3.7% in revenue from the year-earlier quarter to $1.05 billion.
This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 7.9% in the third quarter of the last fiscal year and 15.5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 3.1% in the fourth quarter of the last fiscal year after increasing in the first quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.19 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 1.29 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 13.5% to $3.37 billion while assets rose 4.7% to $4.01 billion.
Analyst Ratings: With 15 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.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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