Airgas Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Airgas, Inc. (NYSE:ARG) will unveil its latest earnings on Tuesday, October 23, 2012. Airgas, through its subsidiaries, distributes industrial, medical, and specialty gases and hardgoods in the United States. It offers a range of gases, including nitrogen and helium, as well as welding and fuel gases. .

Airgas, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.06 per share, a rise of 2.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.19. Between one and three months ago, the average estimate moved down. It also has dropped from $1.07 during the last month. For the year, analysts are projecting net income of $4.64 per share, a rise of 12.9% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the first quarter, it reported profit of $1.13 per share against a mean estimate of $1.15. Two quarters ago, it beat expectations by 4 cents with net income of $1.11.

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A Look Back: In the first quarter, profit rose 21.3% to $90.8 million ($1.15 a share) from $74.8 million (93 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 8% to $1.26 billion from $1.16 billion.

Wall St. Revenue Expectations: On average, analysts predict $1.25 billion in revenue this quarter, a rise of 5% from the year-ago quarter. Analysts are forecasting total revenue of $5.06 billion for the year, a rise of 6.5% from last year’s revenue of $4.75 billion.

Stock Price Performance: Between July 24, 2012 and October 17, 2012, the stock price rose $2.81 (3.5%), from $80.31 to $83.12. The stock price saw one of its best stretches over the last year between September 13, 2012 and September 21, 2012, when shares rose for seven straight days, increasing 3.7% (+$3.06) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 9.9% (-$9.19) over that span.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 29.5% in the third quarter of the last fiscal year and 41.5% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.8% in the second quarter of the last fiscal year, 11.5% in the third quarter of the last fiscal year and 12.6% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With 11 analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.48 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.

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

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