A. Schulman: Here’s What Investors Need to Know Before Earnings

A. Schulman (NASDAQ:SHLM) will report earnings after markets close on Monday, July 1st. A. Schulman, Inc. supplies plastic compounds and resins which are used as raw materials by its customers. The Company combines basic resins purchased from basic resin producers and enhances them with additives. Schulman generally produces compounds to meet customer requirements and on the basis of customer commitments, but also buys and then resells prime and off-grade plastic resins.

Here is your Cheat Sheet to A. Schulman Earnings:

Earnings Expectations: Analysts expect earnings of $0.65 per share on revenues of $576.10 million. Currently, the company’s P/E ratio stands at 14.79.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.56 to a profit $0.58. For the current year, the average estimate is a profit of $2.01, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how A. Schulman has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,984 1,279 1,590 2,193 2,107
Diluted EPS ($) 0.66 -0.11 1.57 1.32 1.72

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter May. 31, 2012 Aug. 31, 2012 Nov. 30, 2012 Feb. 28, 2013
Revenue ($) in millions 569.11 524.45 540.55 522.37
Diluted EPS ($) 0.57 0.38 0.40 0.40

Past Performance:
A. Schulman has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)