In the finance world, the summer is an indicator that earnings season in upon us. Following weeks and sometimes months of internal projections for how a given company will perform, an earnings report that falls short of expectations can spell a dip in share price. On the other hand, companies that under promise and over deliver could be looking at an appreciation in value.
Business Section: Investment Ideas
Listed below are seven companies who are due to release their earnings figures in the next five days. Not only are they set to disclose these figures soon but they also are displaying encouraging accounts receivable trends.
Accounts receivable indicate the amount of income that a company is owed, but there is no guarantee that it will collect on these payments. As this figure grows smaller relative to overall revenue, it is a positive sign that a company’s income could be of higher quality.
Here’s the list:
Interactive Chart: Use the Compar-O-Matic to compare market caps for the stocks mentioned below:
1. Accenture plc (ACN, Earnings, Analysts, Financials): Operates as a management consulting, technology services, and outsourcing company. Market cap at $40.77B, most recent closing price at $57.84. Revenue grew by 11.75% during the most recent quarter ($7,259.83M vs. $6,496.29M y/y). Accounts receivable grew by 7.41% during the same time period ($4,774.76M vs. $4,445.48M y/y). Receivables, as a percentage of current assets, decreased from 43.25% to 41.32% during the most recent quarter (comparing 3 months ending 2012-02-29 to 3 months ending 2011-02-28).
2. Commercial Metals Company (CMC, Earnings, Analysts, Financials): Engages in recycling, manufacturing, fabricating, and distributing steel and metal products, and related materials and services in the United States and internationally. Market cap at $1.38B, most recent closing price at $11.91. Revenue grew by 9.83% during the most recent quarter ($1,956.74M vs. $1,781.65M y/y). Accounts receivable grew by 1.6% during the same time period ($862.94M vs. $849.36M y/y). Receivables, as a percentage of current assets, decreased from 39.11% to 38.36% during the most recent quarter (comparing 3 months ending 2012-02-29 to 3 months ending 2011-02-28).
3. Lindsay Corporation (LNN, Earnings, Analysts, Financials): Designs, manufactures, and sells automated agricultural irrigation systems that are primarily used in the agricultural industry to increase or stabilize crop production while conserving water, energy, and labor in the United States and internationally. Market cap at $702.1M, most recent closing price at $55.24. Revenue grew by 9.95% during the most recent quarter ($132.13M vs. $120.17M y/y). Accounts receivable grew by 3.25% during the same time period ($77.54M vs. $75.1M y/y). Receivables, as a percentage of current assets, decreased from 33.54% to 28.34% during the most recent quarter (comparing 3 months ending 2012-02-29 to 3 months ending 2011-02-28).
4. Monsanto Co. (MON, Earnings, Analysts, Financials): Provides agricultural products for farmers in the United States and internationally. Market cap at $41.98B, most recent closing price at $78.69. Revenue grew by 14.94% during the most recent quarter ($4,748M vs. $4,131M y/y). Accounts receivable grew by 0.47% during the same time period ($3,002M vs. $2,988M y/y). Receivables, as a percentage of current assets, decreased from 34.79% to 29.95% during the most recent quarter (comparing 3 months ending 2012-02-29 to 3 months ending 2011-02-28).
5. OMNOVA Solutions Inc. (OMN, Earnings, Analysts, Financials): Provides emulsion polymers, specialty chemicals, and decorative and functional surfaces for commercial, industrial, and residential end uses primarily in North America, Asia, and Europe. Market cap at $311.78M, most recent closing price at $6.75. Revenue grew by 1.47% during the most recent quarter ($275.9M vs. $271.9M y/y). Accounts receivable grew by -5.64% during the same time period ($169M vs. $179.1M y/y). Receivables, as a percentage of current assets, decreased from 49.28% to 39.7% during the most recent quarter (comparing 3 months ending 2012-02-29 to 3 months ending 2011-02-28).
6. Shaw Group Inc. (SHAW, Earnings, Analysts, Financials): Provides technology, engineering, procurement, construction, maintenance, fabrication, manufacturing, consulting, remediation, and facilities management services to multinational and national oil companies, industrial corporations, regulated utilities, independent and merchant power producers, and government agencies worldwide. Market cap at $1.72B, most recent closing price at $26.08. Revenue grew by 3.5% during the most recent quarter ($1,474.74M vs. $1,424.81M y/y). Accounts receivable grew by -18.39% during the same time period ($730.87M vs. $895.53M y/y). Receivables, as a percentage of current assets, decreased from 19.62% to 18.85% during the most recent quarter (comparing 3 months ending 2012-02-29 to 3 months ending 2011-02-28).
7. Smith & Wesson Holding Corporation (SWHC, Earnings, Analysts, Financials): Offers metal processing services and manufactures firearms and handcuffs as well as apparel and sportsmen’s articles. Market cap at $420.42M, most recent closing price at $6.48. Revenue grew by 23.83% during the most recent quarter ($98.12M vs. $79.24M y/y). Accounts receivable grew by -25.77% during the same time period ($50.52M vs. $68.06M y/y). Receivables, as a percentage of current assets, decreased from 38.34% to 31.27% during the most recent quarter (comparing 3 months ending 2012-01-31 to 3 months ending 2011-01-31).
(Written by Dan Connelly)
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Analyze These Ideas: Getting Started
Dig Deeper: Access Company Snapshots, Charts, Filings
- Accenture plc (ACN, Chart, Download SEC Filings)
- Commercial Metals Company (CMC, Chart, Download SEC Filings)
- Lindsay Corporation (LNN, Chart, Download SEC Filings)
- Monsanto Co. (MON, Chart, Download SEC Filings)
- OMNOVA Solutions Inc. (OMN, Chart, Download SEC Filings)
- Shaw Group Inc. (SHAW, Chart, Download SEC Filings)
- Smith & Wesson Holding Corporation (SWHC, Chart, Download SEC Filings)
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