Inside Praxair, Inc.’s Upcoming Second Quarter Earnings Release

S&P 500 (NYSE:SPY) component Praxair, Inc. (NYSE:PX) will unveil its latest earnings on Wednesday, July 27, 2011. Praxair Inc. produces and sells atmospheric, process and specialty gases, and high-performance surface coatings to industrial clients.

Praxair, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.37 per share, a rise of 15.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.36. For the year, analysts are projecting profit of $5.47 per share, a rise of 15.4% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting net income of $1.29 per share against a mean estimate of profit of $1.27 per share.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $2.79 billion in revenue this quarter, a rise of 10.3% from the year ago quarter. Analysts are forecasting total revenue of $11.16 billion for the year, a rise of 10.3% from last year’s revenue of $10.12 billion.

Analyst Ratings: Analysts are bullish on this stock with 15 analysts rating it as a buy, none rating it as a sell and nine rating it as a hold.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 11.3% to $2.7 billion in first quarter. The figure rose 9% in the fourth quarter of the last fiscal year from the year earlier, climbed 10.9% in the third quarter of the last fiscal year from the year-ago quarter and 18.2% in the second quarter of the last fiscal year.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 1.5%. The quarter with the biggest boost was the most recent quarter, which saw a 26.8% surge.

Competitors to Watch: Air Products & Chemicals, Inc. (NYSE:APD), Airgas, Inc. (NYSE:ARG), and Rentech, Inc. (AMEX:RTK).

Stock Price Performance: During May 24, 2011 to July 21, 2011, the stock price had risen $4.68 (4.6%) from $102.51 to $107.19. The stock price saw one of its best stretches over the last year between March 28, 2011 and April 6, 2011 when shares rose for eight-straight days, rising 3.7% (+$3.66) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven-straight days, falling 5.1% (-$5.33) over that span. Shares are up $12.67 (+13.4%) year to date.

(Source: Xignite Financials)

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

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