Zipcar Second Quarter Earnings Sneak Peek

Zipcar Inc (NASDAQ:ZIP) will unveil its latest earnings on Thursday, August 2, 2012. Zipcar operates a car sharing network for more than 560,000 members.

Zipcar Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for the company to break even after the company reported net loss of 17 cents per share in the year-earlier quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of 13 cents per share, a spike from a loss of 24 cents last year.

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 loss of 8 cents per share against a mean estimate of a loss of 11 cents per share.

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A Look Back: In the first quarter, the company’s loss narrowed to a loss of $3 million (8 cents a share) from a loss of $6.1 million (95 cents) a year earlier, beating analyst expectations. Revenue rose 20.4% to $59.1 million from $49.1 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 18.7% in revenue from the year-earlier quarter to $73.1 million.

Stock Price Performance: Between May 2, 2012 and July 27, 2012, the stock price fell 92 cents (-7.7%), from $12.01 to $11.09. The stock price saw one of its best stretches over the last year between October 20, 2011 and October 28, 2011, when shares rose for seven straight days, increasing 19.3% (+$3.34) over that span. It saw one of its worst periods between September 14, 2011 and September 22, 2011 when shares fell for seven straight days, dropping 18.7% (-$3.92) over that span.

Analyst Ratings: There are five out of seven analysts surveyed (71.4%) rating Zipcar a buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.63 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 1.9 in the fourth quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 8.1% to $99.2 million while liabilities rose by 6.9% to $60.8 million.

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

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