Spectra Energy Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Spectra Energy (NYSE:SE) will unveil its latest earnings on Tuesday, February 5, 2013. Spectra Energy, through its subsidiaries and equity affiliates, owns and operates natural gas-related energy assets.

Spectra Energy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 33 cents per share, a decline of 25% 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 41 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 34 cents during the last month. For the year, analysts are projecting profit of $1.45 per share, a decline of 18.1% from last year.

Past Earnings Performance: The company enters this earnings report having missed estimates the last four quarters. Last quarter, the company fell short of expectations by 4 cents, reporting net income of of 27 cents per share against a mean estimate of profit of 31 cents per share.

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A Look Back: In the third quarter, profit fell 29.5% to $179 million (27 cents a share) from $254 million (39 cents a share) the year earlier, missing analyst expectations. Revenue fell 4.5% to $1.07 billion from $1.12 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.4 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. The company regressed in this liquidity measure from 0.41 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 16.8% to $4.02 billion while assets rose 16.2% to $1.62 billion.

Stock Price Performance: Between November 1, 2012 and January 30, 2013, the stock price fell 96 cents (-3.4%), from $28.65 to $27.69. The stock price saw one of its best stretches over the last year between July 10, 2012 and July 20, 2012, when shares rose for nine straight days, increasing 5% (+$1.46) over that span. It saw one of its worst periods between November 6, 2012 and November 15, 2012 when shares fell for eight straight days, dropping 6.5% (-$1.86) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 4.2% in the first quarter and 6.4% in second quarter before falling again in the third quarter.

Heading into this earnings announcement, net income has dropped 17.6% on average for the last four quarters.

Wall St. Revenue Expectations: Analysts predict a decline of 2.1% in revenue from the year-earlier quarter to $1.4 billion.

Analyst Ratings: There are mostly holds on the stock with six of 11 analysts surveyed giving that rating.

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