Ariba Third Quarter Earnings Sneak Peek

Ariba, Inc. (NASDAQ:ARBA) will unveil its latest earnings on Thursday, July 26, 2012. Ariba is a provider of collaborative business commerce solutions for buying and selling goods and services.

Ariba, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 9 cents per share, a rise of 50% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 7 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 9 cents during the last month. Analysts are projecting profit to rise by 55% versus last year to 31 cents.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the second quarter, the company reported profit of 7 cents per share versus a mean estimate of net income of 6 cents per share. In the first quarter, the company missed estimates by one cent.

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Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price rose $9.67 (27.8%), from $34.75 to $44.42. The stock price saw one of its best stretches over the last year between April 10, 2012 and April 19, 2012, when shares rose for eight straight days, increasing 10.2% (+$3.35) over that span. It saw one of its worst periods between November 14, 2011 and November 25, 2011 when shares fell for nine straight days, dropping 17.8% (-$5.84) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 10.9% in revenue from the year-earlier quarter to $135.3 million.

Analyst Ratings:

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.22 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 1.02 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 28.4% to $279.9 million while liabilities rose by 7% to $228.6 million.

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

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