NYSE Euronext Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component NYSE Euronext (NYSE:NYX) will unveil its latest earnings on Tuesday, February 5, 2013. NYSE Euronext provides securities listing, trading, market data products, and software and technology services.

NYSE Euronext Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 39 cents per share, a decline of 22% 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 49 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 39 cents during the last month. Analysts are projecting profit to rise by 27.4% compared to last year’s $1.80.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with profit of 44 cents per share against the mean estimate of 41 cents. In the prior quarter, the company reported net income of 51 cents.

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A Look Back: In the third quarter, profit fell 46% to $108 million (44 cents a share) from $200 million (76 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 28.3% to $902 million from $1.26 billion.

Wall St. Revenue Expectations: On average, analysts predict $556.4 million in revenue this quarter, a decline of 11.4% from the year-ago quarter. Analysts are forecasting total revenue of $2.32 billion for the year, a decline of 13.1% from last year’s revenue of $2.67 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.6 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.78 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 17.8% to $1.74 billion while assets decreased 8.9% to $1.05 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 17.1% in the first quarter and 9.7% in second quarter before falling again in the third quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 31.6% over the past four quarters.

Analyst Ratings: There are mostly holds on the stock with eight of 13 analysts surveyed giving that rating.

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