Life Technologies Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Life Technologies (NASDAQ:LIFE) will unveil its latest earnings tomorrow, Monday, February 4, 2013. Life Technologies is a global biotechnology tools company offering products that include systems, instruments, reagents, and custom services.

Life Technologies Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.11 per share, a rise of 5.7% 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 was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 7.3% compared to last year’s $3.98.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the third quarter, it reported profit of 92 cents per share against a mean estimate of net income of 89 cents per share. In the second quarter, it missed forecasts by one cent.

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A Look Back: In the third quarter, profit fell 31.6% to $65.9 million (37 cents a share) from $96.3 million (52 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 1.8% to $911.2 million from $928.2 million.

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

life

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.42 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 1.52 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 10.5% to $1.12 billion while assets rose 3.7% to $1.6 billion.

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

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 8.4% in the fourth quarter of the last fiscal year, 4.8% in the first quarter and 0.9%in the second quarter before dropping in the third quarter.

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 31.7% in the fourth quarter of the last fiscal year, 41.6% in the first quarter and 28.2% in the second quarter before declining in the third quarter.

Wall St. Revenue Expectations: Analysts are projecting a rise of 1.9% in revenue from the year-earlier quarter to $989 million.

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