PSS World Medical, Inc. Second Quarter Earnings Sneak Peek

PSS World Medical, Inc. (NASDAQ:PSSI) will unveil its latest earnings on Thursday, October 25, 2012. PSS World Medical is a national distributor of medical products and equipment, pharmaceutical products, healthcare information technology, and billing services to alternate-site healthcare providers.

PSS World Medical, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 29 cents per share, a decline of 21.6% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 20.3% compared to last year’s $1.10.

Past Earnings Performance: The company showed net income of 18 cents per share versus a mean estimate of profit of last quarter. This marks the fourth month of falling short of estimates.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

A Look Back: In the first quarter, profit fell 24.3% to $10.7 million (21 cents a share) from $14.2 million (25 cents a share) the year earlier, missing analyst expectations. Revenue fell 20.3% to $409.4 million from $513.7 million.

Wall St. Revenue Expectations: Analysts predict a decline of 17.9% in revenue from the year-earlier quarter to $428.6 million.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $1.53 (7.5%), from $20.32 to $21.85. The stock price saw one of its best stretches over the last year between September 7, 2012 and September 14, 2012, when shares rose for six straight days, increasing 6.6% (+$1.43) over that span. It saw one of its worst periods between October 5, 2012 and October 15, 2012 when shares fell for seven straight days, dropping 4.6% (-$1.07) over that span.

Key Stats:

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 2% in the fourth quarter of the last fiscal year and dropped again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.53 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 improved this liquidity measure from 3.42 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 17.5% to $806 million while liabilities rose by 13.8% to $228.1 million.

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

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

Time to Buy This Dow Darling Now?

Are Google Shares a Buy Post-Earnings?

Should This Stock be in Your Portfolio After Its Latest Report?