NYSE Euronext Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component NYSE Euronext (NYSE:NYX) will unveil its latest earnings on Tuesday, November 6, 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 net income of 41 cents per share, a decline of 42.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 55 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 46 cents during the last month. Analysts are projecting profit to rise by 23.8% versus last year to $1.89.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported profit of 51 cents per share against a mean estimate of net income of 50 cents per share. In the first quarter, it missed forecasts by 2 cents.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 19.2% in revenue from the year-earlier quarter to $568.5 million.

A Look Back: In the second quarter, profit fell 18.8% to $125 million (49 cents a share) from $154 million (59 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 9.7% to $986 million from $1.09 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.78 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 0.95 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 22% to $1.48 billion while assets rose 0.2% to $1.15 billion.

Key Stats:

After experiencing income drops the past three quarters, the company is hoping to use this earnings announcement to rebound. Net income fell 17.8% in the fourth quarter of the last fiscal year, by 43.9% in the first quarter and again in the second quarter.

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

Stock Price Performance: Between September 5, 2012 and October 31, 2012, the stock price had fallen 63 cents (-2.5%), from $25.39 to $24.76. 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 August 20, 2012 and August 28, 2012 when shares fell for seven straight days, dropping 4.1% (-$1.08) over that span.

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

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

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