Tibco Software Inc. Third Quarter Earnings Sneak Peek

Tibco Software Inc. (NASDAQ:TIBX) will unveil its latest earnings on Thursday, September 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 analyst estimate is for profit of 20 cents per share, a rise of 17.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 21 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 20 cents during the last month. Analysts are projecting profit to rise by 11.9% versus last year to 94 cents.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting net income of 20 cents per share against a mean estimate of profit of 17 cents per share.

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A Look Back: In the second quarter, profit rose 25.9% to $26.5 million (16 cents a share) from $21 million (12 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 14.3% to $247.4 million from $216.4 million.

Stock Price Performance: Between June 20, 2012 and September 14, 2012, the stock price rose $4.31 (15.9%), from $27.12 to $31.43. The stock price saw one of its best stretches over the last year between August 30, 2012 and September 7, 2012, when shares rose for six straight days, increasing 10% (+$2.96) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 15.9% (-$4.87) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 13.5% in revenue from the year-earlier quarter to $259.8 million.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 20.1% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 38.4% in the fourth quarter of the last fiscal year and 29.4% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.35 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 improved this liquidity measure from 1.72 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 48.5% to $887.6 million while liabilities rose by 8.8% to $378.3 million.

Analyst Ratings: With 11 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)

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