MeadWestvaco Corp. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component MeadWestvaco Corp. (NYSE:MWV) will unveil its latest earnings on Wednesday, October 26, 2011. MeadWestvaco 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 net income of 65 cents per share, a rise of 3.2% 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 67 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 65 cents during the last month. For the year, analysts are projecting profit of $2.02 per share, a rise of 31.2% from last year.

Past Earnings Performance: Last quarter, the company saw net income of 54 cents per share versus a mean estimate of profit of 54 cents per share. This comes after two consecutive quarters of exceeding expectations.

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Wall St. Revenue Expectations: On average, analysts predict $1.59 billion in revenue this quarter, a rise of 1.9% from the year ago quarter. Analysts are forecasting total revenue of $6.03 billion for the year, a rise of 6% from last year’s revenue of $5.69 billion.

Analyst Ratings: Analysts are bullish on this stock with eight analysts rating it as a buy, none rating it as a sell and one rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the second quarter, profit rose 78% to $89 million (51 cents a share) from $50 million (29 cents a share) the year earlier, meeting analyst expectations. Revenue rose 0.3% to $1.56 billion from $1.55 billion.

Key Stats:

A year-over-year revenue increase in the second quarter snapped a streak of three consecutive quarters of revenue declines. Revenue fell 2.6% in the first quarter, 18.9% in the fourth quarter of the last fiscal year 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), and Celulose Irani SA (RANI3).

Stock Price Performance: During July 27, 2011 to October 20, 2011, the stock price had fallen $4.83 (-15.2%) from $31.78 to $26.95. 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 5.5% (+$1.35) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine-straight days, falling 11.4% (-$3.78) over that span. Shares are up $1.41 (+5.5%) year to date.

(Source: Xignite Financials)

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