Bemis Company Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Bemis Company, Inc. (NYSE:BMS) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Bemis Company is a manufacturer of flexible packaging products and pressure-sensitive materials for customers worldwide.

Bemis Company, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 49 cents per share, a rise of 8.9% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 6.5% compared to last year’s $2.12.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 6 cents, reporting net income of 60 cents per share against a mean estimate of profit of 54 cents per share.

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A Look Back: In the third quarter, profit fell 15.1% to $47.4 million (45 cents a share) from $55.9 million (53 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 5.2% to $1.29 billion from $1.36 billion.

Here’s how Bemis Company traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

bms

Wall St. Revenue Expectations: Analysts are projecting a decline of 3.1% in revenue from the year-earlier quarter to $1.23 billion.

Analyst Ratings: There are mostly holds on the stock with five of nine analysts surveyed giving that rating.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 1.5% in the first quarter and 4.2% in second quarter before falling again in the third quarter.

Heading into this earnings announcement, net income has dropped 27.1% on average for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.28 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.32 in the second quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 1.3% to $1.59 billion while liabilities rose by 0.6% to $698.1 million.

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