Bemis Company Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Bemis Company, Inc. (NYSE:BMS) will unveil its latest earnings on Thursday, October 25, 2012. 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 54 cents per share, a decline of 3.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 55 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 54 cents during the last month. For the year, analysts are projecting net income of $2.04 per share, a rise of 2.5% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 54 cents per share versus a mean estimate of net income of 52 cents per share.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

A Look Back: In the second quarter, profit fell 22% to $42.3 million (40 cents a share) from $54.3 million (51 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 4.2% to $1.31 billion from $1.37 billion.

Stock Price Performance: Between August 23, 2012 and October 19, 2012, the stock price had risen $2.19 (7.2%), from $30.23 to $32.42. The stock price saw one of its best stretches over the last year between July 12, 2012 and July 19, 2012, when shares rose for six straight days, increasing 4.3% (+$1.28) over that span. It saw one of its worst periods between May 9, 2012 and May 18, 2012 when shares fell for eight straight days, dropping 5.9% (-$1.86) over that span.

Wall St. Revenue Expectations: On average, analysts predict $1.31 billion in revenue this quarter, a decline of 3.7% from the year-ago quarter. Analysts are forecasting total revenue of $5.2 billion for the year, a decline of 2.3% from last year’s revenue of $5.32 billion.

Key Stats:

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

Heading into this earnings announcement, net income has dropped 25.6% on average for the last four quarters.

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

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.32 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 2.37 in the first quarter to the last quarter driven in part by a decrease in current assets. Current assets decreased 1.3% to $1.61 billion while liabilities rose by 0.9% to $694.1 million.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

Time to Buy This Dow Darling Now?

Are Google Shares a Buy Post-Earnings?

Should This Stock be in Your Portfolio After Its Latest Report?