United Technologies Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component United Technologies (NYSE:UTX) will unveil its latest earnings tomorrow, Wednesday, January 23, 2013. United Technologies provides high tech products and services to the building systems and aerospace industries worldwide.

United Technologies Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.02 per share, a decline of 30.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.20. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.02 during the last month. Analysts are projecting profit to rise by 3.8% versus last year to $5.32.

Past Earnings Performance: Last quarter, the company reported profit of $1.37 per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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Wall St. Revenue Expectations: Analysts predict a rise of 11.2% in revenue from the year-earlier quarter to $16.64 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.2 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.98 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 33.6% to $26.45 billion while assets decreased 19.1% to $31.68 billion.

A Look Back: In the third quarter, profit rose 6.9% to $1.42 billion ($1.56 a share) from $1.32 billion ($1.47 a share) the year earlier, exceeding analyst expectations. Revenue rose 1.6% to $15.04 billion from $14.8 billion.

Here’s how United Technologies traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Key Stats:

On the top line, the company is looking to build a positive trend after last quarter’s growth snapped a string of drops. Revenue fell 6.9% in the first quarter and 8.4% in the second quarter before climbing in the third quarter.

The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 12.3% over the past four quarters.

Analyst Ratings: With 15 analysts rating the stock a buy, none rating it a sell and three 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)