QEP Resources Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component QEP Resources Inc (NYSE:QEP) will unveil its latest earnings on Tuesday, October 30, 2012. QEP Resources is an energy company that explores and develops natural gas, oil and natural gas liquids.

QEP Resources Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 35 cents per share, a decline of 25.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 36 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 35 cents during the last month. For the year, analysts are projecting profit of $1.50 per share, a decline of 15.3% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by one cent, coming in at net income of 31 cents per share against an estimate of profit of. In the first quarter, the company also missed expectations.

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A Look Back: In the second quarter, the company swung to a loss of $700,000 (0 cents a share) from a profit of $92.8 million (52 cents) a year earlier, missing analyst expectations. Revenue fell 36.3% to $499.3 million from $784.1 million.

Wall St. Revenue Expectations: On average, analysts predict $614.6 million in revenue this quarter, a decline of 27.9% from the year-ago quarter. Analysts are forecasting total revenue of $2.25 billion for the year, a decline of 28.8% from last year’s revenue of $3.16 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.63 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

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 51% in the third quarter of the last fiscal year, 62% in the fourth quarter of the last fiscal year and 1.2%in the first quarter before dropping in the second quarter.

Analyst Ratings: With 12 analysts rating the stock a buy, one rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

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

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