Neutral Tandem Second Quarter Earnings Sneak Peek

Neutral Tandem (NASDAQ:TNDM) will unveil its latest earnings on Monday, July 25, 2011. Neutral Tandem, Inc. provides tandem interconnection services principally to competitive carriers, including wireless, wireline, cable and broadband telephony companies.

Neutral Tandem Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 24 cents per share, a decline of 4% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting profit of $1 per share, a decline of 3.8% from last year.

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 24 cents per share versus a mean estimate of profit of 24 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 5 cents.

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Wall St. Revenue Expectations: On average, analysts predict $66.7 million in revenue this quarter, a rise of 49.1% from the year ago quarter. Analysts are forecasting total revenue of $268.1 million for the year, a rise of 34.2% from last year’s revenue of $199.8 million.

Analyst Ratings: Analysts seem relatively indifferent about Neutral Tandem with eight of 11 analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 48.2% to $66.4 million in first quarter. The figure rose 42.6% in the fourth quarter of the last fiscal year from the year earlier, climbed 3.9% in the third quarter of the last fiscal year from the year-ago quarter and 8.5% in the second quarter of the last fiscal year.

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 19.9% over the past four quarters. The quarter hit the hardest was the fourth quarter of the last fiscal year, that saw a 42.2% drop.

Competitors to Watch: AT&T Inc. (NYSE:T), CenturyLink, Inc. (NYSE:CTL), Verizon Communications Inc. (NYSE:VZ), AboveNet, Inc. (NYSE:ABVT), Windstream Corporation (NASDAQ:WIN), Consolidated Communications Hldgs. Inc (NASDAQ:CNSL), Xfone, Inc. (AMEX:XFN) and Sprint (NYSE:S).

Stock Price Performance: During April 21, 2011 to July 19, 2011, the stock price had risen $1.34 (8.7%) from $15.33 to $16.67. The stock price saw one of its best stretches over the last year between June 15, 2011 and June 28, 2011 when shares rose for 10-straight days, rising 8.7% (+$1.39) over that span. It saw one of its worst periods between January 12, 2011 and January 20, 2011 when shares fell for six-straight days, falling 3.7% (-59 cents) over that span. Shares are up $2.23 (+15.4%) year to date.

(Source: Xignite Financials)

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