Pall Corp First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Pall Corporation (NYSE:PLL) will unveil its latest earnings on Wednesday, November 28, 2012. Pall supplies filtration, separation, and purification technologies for the removal of contaminants from a variety of liquids and gases.

Pall Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 66 cents per share, a decline of 10.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 70 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 69 cents during the last month. Analysts are projecting profit to rise by 11.4% versus last year to $3.12.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the fourth quarter of the last fiscal year, it reported profit of 86 cents per share against a mean estimate of net income of 77 cents per share. In the third quarter of the last fiscal year, it missed forecasts by 9 cents.

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A Look Back: In the fourth quarter of the last fiscal year, profit fell 11.4% to $86.2 million (73 cents a share) from $97.4 million (83 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 7.4% to $722.4 million from $780.4 million.

Stock Price Performance: Between August 28, 2012 and November 21, 2012, the stock price rose $5.73 (10.5%), from $54.78 to $60.51. The stock price saw one of its best stretches over the last year between January 27, 2012 and February 9, 2012, when shares rose for 10 straight days, increasing 7.9% (+$4.68) over that span. It saw one of its worst periods between February 27, 2012 and March 6, 2012 when shares fell for seven straight days, dropping 5.8% (-$3.68) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 9.8% in revenue from the year-earlier quarter to $636.6 million.

Key Stats:

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 12% in the second quarter of the last fiscal year and 11% in the third quarter of the last fiscal year before dropping in the fourth quarter of the last fiscal year.

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 7.3% in the third quarter of the last fiscal year and dropped again in the fourth quarter of the last fiscal year of the last fiscal year.

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

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.17 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.29 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3.4% to $852.1 million while assets decreased 1.9% to $1.85 billion.

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