Zipcar Third Quarter Earnings Sneak Peek

Zipcar Inc (NASDAQ:ZIP) will unveil its latest earnings on Thursday, November 8, 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 analyst estimate is for profit of 2 cents per share, no change from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 3 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 2 cents during the last month. For the year, analysts are projecting net income of 2 cents per share, a spike from net loss of 24 cents last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported a loss of one cent per share versus a mean estimate of 0 cents per share. In the first quarter, the company beat estimates by 3 cents.

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A Look Back: In the second quarter, the company’s loss narrowed to a loss of $422,000 (one cent a share) from a loss of $5.6 million (17 cents) a year earlier, but missed analyst expectations. Revenue rose 15% to $70.8 million from $61.6 million.

Stock Price Performance: Between September 7, 2012 and November 2, 2012, the stock price had fallen $1.44 (-18.1%), from $7.94 to $6.50. The stock price saw one of its best stretches over the last year between June 15, 2012 and June 22, 2012, when shares rose for six straight days, increasing 12.1% (+$1.22) over that span. It saw one of its worst periods between October 12, 2012 and October 19, 2012 when shares fell for six straight days, dropping 9.8% (-72 cents) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 11.2% in revenue from the year-earlier quarter to $75.7 million.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 20.4% in the first quarter before climbing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.36 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 1.63 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 10% to $89.3 million while liabilities rose by 8.5% to $65.9 million.

Analyst Ratings: There are mostly holds on the stock with five of seven analysts surveyed giving that rating.

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

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