Williams Cos Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Williams Cos (NYSE:WMB) will unveil its latest earnings on Tuesday, October 30, 2012. Williams Companies is engaged in finding, producing, gathering, processing and transporting natural gas.

Williams Cos Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 27 cents per share, a decline of 32.5% 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 29 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 27 cents during the last month. Analysts are projecting profit to rise by 4.9% compared to last year’s $1.17.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by 3 cents in the first quarter, the company fell in line with expectations by reporting profit of 22 cents per share last quarter.

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A Look Back: In the second quarter, profit fell 41.9% to $132 million (21 cents a share) from $227 million (38 cents a share) the year earlier, meeting analyst expectations. Revenue fell 30.8% to $1.85 billion from $2.67 billion.

Wall St. Revenue Expectations: Analysts predict a decline of 23.3% in revenue from the year-earlier quarter to $2.07 billion.

Stock Price Performance: Between July 31, 2012 and October 24, 2012, the stock price rose $2.87 (9%), from $31.79 to $34.66. The stock price saw one of its best stretches over the last year between July 10, 2012 and July 23, 2012, when shares rose for 10 straight days, increasing 9.3% (+$2.69) over that span. It saw one of its worst periods between May 11, 2012 and May 18, 2012 when shares fell for six straight days, dropping 8.8% (-$2.87) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell more than twofold in the fourth quarter of the last fiscal year and 21.6% in first quarter before falling again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.3 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.

Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and one 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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