Polypore Intl Third Quarter Earnings Sneak Peek

Polypore International, Inc. (NYSE:PPO) will unveil its latest earnings on Tuesday, October 30, 2012. Polypore International is a global technology filtration company that develops, manufactures, and markets specialized microporous membranes used in separation and filtration processes.

Polypore International, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 33 cents per share, a decline of 34% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 57 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 40 cents during the last month. Analysts are projecting profit to rise by 22% compared to last year’s $1.70.

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 45 cents per share versus a mean estimate of 47 cents. Two quarters ago, it reported profit of 37 cents per share.

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A Look Back: In the second quarter, profit fell 30.6% to $20.5 million (43 cents a share) from $29.5 million (63 cents a share) the year earlier, missing analyst expectations. Revenue fell 5.4% to $185.8 million from $196.4 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.13 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 3.52 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 57.2% to $148.7 million while assets decreased 5% to $316.2 million.

Stock Price Performance: Between August 28, 2012 and October 24, 2012, the stock price had risen $3.66 (11.7%), from $31.39 to $35.05. The stock price saw one of its best stretches over the last year between August 29, 2012 and September 7, 2012, when shares rose for seven straight days, increasing 17.8% (+$5.50) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 13.5% (-$7.87) over that span.

Key Stats:

An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 26.9% in the first quarter and then 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 6.4% in the first quarter and dropped again in the second quarter.

Wall St. Revenue Expectations: Analysts predict a decline of 8.5% in revenue from the year-earlier quarter to $174 million.

Analyst Ratings: With five analysts rating the stock as a buy, none rating it as a sell and five 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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