Sonus Networks Third Quarter Earnings Sneak Peek

Sonus Networks, Inc. (NASDAQ:SONS) will unveil its latest earnings on Wednesday, November 7, 2012. Sonus Networks is a provider of voice infrastructure solutions for wireline and wireless service providers.

Sonus Networks, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for a loss of 4 cents per share, a spike from profit of one cent in the year-ago quarter. During the past three months, the average estimate has moved down from a loss of one cent. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 4 cents during the last month.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported net loss of 4 cents per share against a mean estimate of 3 cents. Two quarters ago, it beat expectations by one cent with a loss of 2 cents.

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A Look Back: In the second quarter, the company’s loss widened to a loss of a $11.7 million (4 cents a share) from a loss of $5.9 million (2 cents) a year earlier, missing analyst expectations. Revenue rose 11.3% to $57.6 million from $51.8 million.

Wall St. Revenue Expectations: Analysts predict a decline of 14% in revenue from the year-earlier quarter to $57.1 million.

Stock Price Performance: Between August 8, 2012 and November 1, 2012, the stock price rose 9 cents (5.2%), from $1.81 to $1.91. The stock price saw one of its best stretches over the last year between August 23, 2012 and August 29, 2012, when shares rose for five straight days, increasing 7.8% (+14 cents) 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 10.7% (-33 cents) over that span.

Key Stats:

The company is looking to build on last quarter’s top line growth, which snapped a string of revenue declines. Revenue fell 10.5% in the fourth quarter of the last fiscal year and 4.4% in the first quarter before climbing in the second quarter.

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

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 6.02 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.

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

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