West Marine Inc. Third Quarter Earnings Sneak Peek

West Marine, Inc. (NASDAQ:WMAR) will unveil its latest earnings on Thursday, October 25, 2012. West Marine operates as a boating supply retailer in the United States.

West Marine, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 52 cents per share, a rise of 8.3% from the company’s actual earnings for the same quarter a year ago. Analysts are projecting profit to rise by 14.5% versus last year to 63 cents.

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A Look Back: In the second quarter, profit fell 49.5% to $22.6 million (95 cents a share) from $44.7 million ($1.92 a share) the year earlier. Revenue rose 3.2% to $243.6 million from $236 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.06 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 3.19 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 18.9% to $104.9 million while assets rose 14.1% to $321 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 4.5% in the third quarter of the last fiscal year, 5.7% in the fourth quarter of the last fiscal year and 6.7% in the first quarter before increasing again in the second quarter.

Heading into this earnings season, the company is looking to build on good signs from last quarter. The company reported losses in the fourth quarter of the last fiscal year and the first quarter, but finished in the black with income of $22.6 million in the second.

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

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