Tibco Software Fourth Quarter Earnings Sneak Peek

Tibco Software Inc. (NASDAQ:TIBX) will unveil its latest earnings on Thursday, December 20, 2012. TIBCO Software is a provider of infrastructure software. It offers a range of standards-based infrastructure software solutions that help organizations achieve the benefits of real-time business.

Tibco Software Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 32 cents per share, a decline of 13.5% 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 40 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 37 cents during the last month. For the year, analysts are projecting profit of 85 cents per share, a rise of 1.2% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the third quarter, the company reported net income of 20 cents per share versus a mean estimate of profit of 20 cents per share. In the second quarter, the company beat estimates by 3 cents.

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Stock Price Performance: Between September 20, 2012 and December 14, 2012, the stock price fell $9.28 (-31.1%), from $29.86 to $20.58. The stock price saw one of its best stretches over the last year between November 20, 2012 and November 28, 2012, when shares rose for six straight days, increasing 5.2% (+$1.27) over that span. It saw one of its worst periods between October 2, 2012 and October 11, 2012 when shares fell for eight straight days, dropping 10% (-$2.98) over that span.

A Look Back: In the third quarter, profit rose 10.9% to $26.1 million (15 cents a share) from $23.5 million (14 cents a share) the year earlier, meeting analyst expectations. Revenue rose 11.4% to $255 million from $229 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.13 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 regressed in this liquidity measure from 2.35 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 18.5% to $448.2 million while assets rose 7.6% to $955.2 million.

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 16.9% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 29.4% in the first quarter and 25.9% in the second quarter before increasing again in the third quarter.

Wall St. Revenue Expectations: On average, analysts predict $297.6 million in revenue this quarter, a rise of 2.8% from the year-ago quarter. Analysts are forecasting total revenue of $1.03 billion for the year, a rise of 11.9% from last year’s revenue of $920.3 million.

Analyst Ratings: With 13 analysts rating the stock a buy, none rating it a sell and six 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)