NYSE Euronext Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component NYSE Euronext (NYSE:NYX) will unveil its latest earnings on Friday, August 3, 2012. 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 analyst estimate is for profit of 50 cents per share, a decline of 18% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 53 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 52 cents during the last month. Analysts are projecting profit to rise by 14.9% versus last year to $2.11.

Past Earnings Performance: Last quarter, the company missed estimates by 2 cents, coming in at net income of 47 cents per share versus a mean estimate of profit of 49 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by one cent.

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A Look Back: In the first quarter, profit fell 43.9% to $87 million (34 cents a share) from $155 million (59 cents a share) the year earlier, missing analyst expectations. Revenue fell 17.1% to $952 million from $1.15 billion.

Stock Price Performance: Between June 1, 2012 and July 30, 2012, the stock price had risen $2.22 (9.4%), from $23.72 to $25.94. The stock price saw one of its best stretches over the last year between February 15, 2012 and February 27, 2012, when shares rose for eight straight days, increasing 5.9% (+$1.72) over that span. It saw one of its worst periods between December 9, 2011 and December 19, 2011 when shares fell for seven straight days, dropping 7.7% (-$2.09) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 8.2% in revenue from the year-earlier quarter to $606.7 million.

Key Stats:

After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 17.8% in the fourth quarter of the last fiscal year and then again in the first quarter.

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 0.9% in the fourth quarter of the last fiscal year and 19.8% in the third quarter of the last fiscal year before falling in the first quarter.

Analyst Ratings: There are mostly holds on the stock with nine of 15 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.95 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 1.0 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5.7% to $1.21 billion while assets decreased 0.4% to $1.15 billion.

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

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