MeadWestvaco Corp. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component MeadWestvaco Corp. (NYSE:MWV) will unveil its latest earnings on Wednesday, July 27, 2011. MeadWestvaco Corporation provides packaging solutions to clients in the healthcare, personal and beauty care, food, beverage, tobacco, media and entertainment, and home and garden industries.

MeadWestvaco Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 54 cents per share, a rise of 54.3% 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 49 cents. For the year, analysts are projecting net income of $2.04 per share, a rise of 32.5% 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 20 cents, reporting profit of 43 cents per share against a mean estimate of net income of 23 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.52 billion in revenue this quarter, a decline of 1.9% from the year ago quarter. Analysts are forecasting total revenue of $5.96 billion for the year, a rise of 4.7% from last year’s revenue of $5.69 billion.

Analyst Ratings: Analysts are bullish on MeadWestvaco as five analysts rate it as a buy, none rate it as a sell and five rate it as a hold.

Key Stats:

Revenue has fallen for the past three quarters. In first quarter, revenue declined 2.6% to $1.36 billion while the figure fell 18.9% in fourth quarter of the last fiscal year from the year earlier and 4.1% in the third quarter of the last fiscal year.

Competitors to Watch: Smurfit-Stone Container Corp. (NYSE:SSCC), Rock-Tenn Company (NYSE:RKT), Packaging Corp. of America (NYSE:PKG), MOD-PAC CORP. (NASDAQ:MPAC), Graphic Packaging Holding Co. (NYSE:GPK), International Paper Co. (NYSE:IP), KapStone Paper and Packaging Corp. (NYSE:KS), Clearwater Paper Corp (NYSE:CLW), Temple-Inland, Inc. (NYSE:TIN).

Stock Price Performance: During June 22, 2011 to July 21, 2011, the stock price had risen $1.57 (4.9%) from $31.94 to $33.51. The stock price saw one of its best stretches over the last year between December 15, 2010 and December 29, 2010 when shares rose for 10-straight days, rising 5.6% (+$1.37) over that span. It saw one of its worst periods between August 4, 2010 and August 11, 2010 when shares fell for six-straight days, falling 7.8% (-$1.81) over that span. Shares are up $7.77 (+30.2%) year to date.

(Source: Xignite Financials)

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