Range Resources Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Range Resources Corp. (NYSE:RRC) will unveil its latest earnings on Wednesday, October 24, 2012. Range Resources is an independent natural gas company that primarily explores and develops gas properties in the Southwestern and Appalachian regions of the United States.

Range Resources Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for the company to break even after the company reported net income of 28 cents per share in the year-earlier quarter. During the past three months, the average estimate has moved down from 11 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at breaking even during the last month. Analysts are projecting profit to rise by 41.2% versus last year to 20 cents.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 12 cents, reporting profit of 11 cents per share against a mean estimate of a loss of one cent per share.

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Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $9.97 (16.5%), from $60.53 to $70.50. The stock price saw one of its best stretches over the last year between April 20, 2012 and May 1, 2012, when shares rose for eight straight days, increasing 18.5% (+$10.65) over that span. It saw one of its worst periods between May 23, 2012 and June 1, 2012 when shares fell for seven straight days, dropping 15.2% (-$9.78) over that span.

A Look Back: In the second quarter, profit rose 8.5% to $55.7 million (34 cents a share) from $51.3 million (32 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 73.4% to $442.4 million from $255.2 million.

Wall St. Revenue Expectations: On average, analysts predict $349.6 million in revenue this quarter, a rise of 3.4% from the year-ago quarter. Analysts are forecasting total revenue of $1.4 billion for the year, a rise of 14.8% from last year’s revenue of $1.22 billion.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 52.5% over the last four quarters.

Heading into this earnings season, the company is looking to build on good signs from last quarter. The company reported losses in the fourth quarter of the last fiscal year and the first quarter, but finished in the black with income of $55.7 million in the second.

Analyst Ratings: There are 16 out of 29 analysts surveyed (55.2%) rating Range Resources a buy. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.69 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.

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

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