United Technologies Earnings on Deck

S&P 500 (NYSE:SPY) component United Technologies (NYSE:UTX) will unveil its latest earnings on Tuesday, October 23, 2012. 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 estimate of analysts is for profit of $1.17 per share, a decline of 21.5% 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 $1.34. Between one and three months ago, the average estimate moved down. It has risen from $1.14 during the last month. Analysts are projecting profit to rise by 4.3% versus last year to $5.29.

Past Earnings Performance: Last quarter, the company beat estimates by 17 cents, coming in at net income of $1.58 per share against an estimate of profit of. The company also topped expectations in the first quarter.

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Stock Price Performance: Between July 24, 2012 and October 17, 2012, the stock price rose $6.60 (9.2%), from $71.94 to $78.54. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 15, 2012, when shares rose for eight straight days, increasing 6.8% (+$5.50) over that span. It saw one of its worst periods between September 19, 2012 and September 28, 2012 when shares fell for eight straight days, dropping 4.2% (-$3.43) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 5.1% in revenue from the year-earlier quarter to $15.55 billion.

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.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 6.9% in the first quarter and dropped again in the second 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 11.4% over the past four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.98 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 improved this liquidity measure from 1.52 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 40.6% to $39.14 billion while liabilities rose by 8% to $19.79 billion.

A Look Back: In the second quarter, profit rose 0.8% to $1.33 billion ($1.47 a share) from $1.32 billion ($1.45 a share) the year earlier, exceeding analyst expectations. Revenue fell 8.4% to $13.81 billion from $15.08 billion.

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

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