Neutral Tandem Third Quarter Earnings Sneak Peek

Neutral Tandem (NASDAQ:TNDM) will unveil its latest earnings on Tuesday, November 8, 2011. Neutral Tandem provides tandem interconnection services principally to competitive carriers, including wireless, wireline, cable and broadband telephone 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 22.6% 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 26 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 24 cents during the last month. For the year, analysts are projecting profit of 92 cents per share, a decline of 11.5% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the second quarter, it reported net income of 20 cents per share versus a mean estimate of 24 cents. Two quarters ago, it reported profit of 24 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $66.6 million in revenue this quarter, a rise of 43.3% from the year ago quarter. Analysts are forecasting total revenue of $266 million for the year, a rise of 33.1% 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.

A Look Back: In the second quarter, profit fell 17% to $7.1 million (20 cents a share) from $8.5 million (25 cents a share) the year earlier, missing analyst expectations. Revenue rose 45.4% to $65.1 million from $44.8 million.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 48.2% in the first quarter from the year earlier, climbed 42.6% in the fourth quarter of the last fiscal year from the year-ago quarter and 3.9% in the third quarter of the last fiscal year.

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 Nextel (NYSE:S).

Stock Price Performance: During August 9, 2011 to November 2, 2011, the stock price had fallen 90 cents (-7.9%) from $11.41 to $10.51. 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 August 3, 2011 and August 11, 2011 when shares fell for seven-straight days, falling 29.6% (-$4.49) over that span. Shares are down $3.93 (-27.2%) year to date.

(Source: Xignite Financials)

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.