3 Stocks Traders are Analyzing to Buy or Sell After Earnings

Investors looked to Dow Chemical (NYSE:DOW), International Paper (NYSE:IP) and Royal Gold (NASDAQ:RGLD) for perspective on a few different sectors following earnings seasons. Here’s how the results panned out:

Dow Chemical Co. (NYSE:DOW) reported its results for the fourth quarter. Reported a loss of $20 million (2 cents per diluted share) in the quarter. The chemicals company had net income of $426 million or 37 cents per share in the year earlier quarter. Revenue rose 2.4% to $14.1 billion from the year earlier quarter. Dow Chemical Co. reported adjusted net income of 25 cents per share. By that measure, the company fell short of mean estimate of 32 cents per share. Analysts were expecting revenue of $14.19 billion.

Andrew N. Liveris, Dow’s chairman and chief executive officer, stated: “Dow saw deterioration in the macro environment mid-quarter and, in line with our stated commitments, we purposefully intervened. In the midst of uncertainty and significant destocking across customer supply chains, we maintained our focus on financial discipline and operating efficiency – evidenced by our tight management of working capital, focus on improving operating rates and significant cash flow generation.”

Competitors to Watch: E.I. du Pont de Nemours & Co. (NYSE:DD), Huntsman Corporation (NYSE:HUN), Eastman Chemical Company (NYSE:EMN), PolyOne Corporation (NYSE:POL), FMC Corporation (NYSE:FMC), Westlake Chemical Corp. (NYSE:WLK), Rockwood Holdings, Inc. (NYSE:ROC), Albemarle Corporation (NYSE:ALB), Solutia Inc. (NYSE:SOA), and Ashland Inc. (NYSE:ASH).

International Paper Co. (NYSE:IP) reported its results for the fourth quarter. Net income for International Paper Co. fell to $257 million (59 cents per share) vs. $316 million (74 cents per share) a year earlier. This is a decline of 18.7% from the year earlier quarter. Revenue fell 2.5% to $6.37 billion from the year earlier quarter. International Paper Co. fell short of the mean analyst estimate of 61 cents per share. It fell short of the average revenue estimate of $6.5 billion.

“Margin expansion across our global operations, as well as growth in emerging markets, contributed to a solid fourth quarter and drove IP’s performance throughout 2011,” said John Faraci, Chairman and Chief Executive Officer. “International Paper has consistently delivered strong results for the sixth consecutive quarter since the global downturn, generating our best financial results in nearly two decades. Sustaining positive momentum in an uneven global economy is challenging, but over the course of the full year ahead we remain confident in our ability to continue to execute at a high level.”

Competitors to Watch: Clearwater Paper Corp (NYSE:CLW), P.H. Glatfelter Company (NYSE:GLT), Wausau Paper Corp. (NYSE:WPP), MeadWestvaco Corp. (NYSE:MWV), KapStone Paper and Packaging Corp. (NYSE:KS), Boise Inc. (NYSE:BZ), Buckeye Technologies Inc. (NYSE:BKI), Fibria Celulose S.A. (NYSE:FBR), and Domtar Corp. (NYSE:UFS).

Royal Gold Inc. (NASDAQ:RGLD) reported higher profit for the second quarter as revenue showed growth. Net income for the gold company rose to $23.4 million (42 cents per share) vs. $18.3 million (33 cents per share) in the same quarter a year earlier. This marks a rise of 27.8% from the year earlier quarter. Revenue rose 22.2% to $68.8 million from the year earlier quarter. Royal Gold Inc. fell short of the mean analyst estimate of 48 cents per share. It fell short of the average revenue estimate of $73.3 million.

Tony Jensen, President and CEO, commented, “We are pleased to have recorded another solid quarter of financial results. This marks the third consecutive quarter of record revenue and net income for Royal Gold as our growth profile continues to deliver financial results. We also had a very productive quarter furthering our growth projects within the portfolio with the acquisition of an additional interest at the Mt. Milligan project and completing a transaction on the Tulsequah Chief project, both located in British Columbia. In total, we have committed $330 million for these transactions, subject to certain conditions. To fuel this growth and position the Company for the future, we conducted an equity offering in mid-January which raised approximately $268.4 million.”

Competitors to Watch: Newmont Mining Corporation (NYSE:NEM), Alto Group Holdings Inc. (ALTO), U.S. Gold Corporation (NYSE:UXG), Allied Nevada Gold Corp. (AMEX:ANV), Barrick Gold Corp. (NYSE:ABX), Coeur d’Alene Mines Corp. (NYSE:CDE), Rio Tinto plc (NYSE:RIO), Vista Gold Corp. (AMEX:VGZ), SPDR Gold Trust (NYSE:GLD), SPDR Silver Trust (NYSE:SLV) and Paramount Gold and Silver Corp. (AMEX:PZG)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com