LSI Corp Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component LSI Corporation (NASDAQ:LSI) will unveil its latest earnings on Wednesday, January 23, 2013. LSI designs and markets complex storage and networking semiconductors and storage systems.

LSI Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 9 cents per share, a decline of 18.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 14 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 9 cents during the last month. Analysts are projecting profit to rise by 42.1% versus last year to 54 cents.

Past Earnings Performance: Last quarter, the company saw profit of 13 cents per share versus a mean estimate of net income of 13 cents per share. This comes after two consecutive quarters of exceeding expectations.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

A Look Back: In the third quarter, profit rose 35.2% to $39.7 million (7 cents a share) from $29.3 million (5 cents a share) the year earlier, meeting analyst expectations. Revenue rose 14.1% to $624 million from $546.9 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 12.9% in revenue from the year-earlier quarter to $590.5 million.

Analyst Ratings: With seven analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 31.5% in the first quarter and 31.7% in the second quarter before climbing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.46 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.49 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 1.8% to $476.8 million while assets rose 0.7% to $1.17 billion.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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