MeadWestvaco Quarterly Earnings Sneak Peek

S&P 500 (NYSE:SPY) component MeadWestvaco (NYSE:MWV) will unveil its latest earnings on Tuesday, October 23, 2012. 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 Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 39 cents per share, a decline of 44.3% 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 46 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 39 cents during the last month. For the year, analysts are projecting profit of $1.43 per share, a decline of 25.5% from last year.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported net income of 46 cents per share against a mean estimate of profit of 39 cents, and the quarter before, the company exceeded forecasts by 10 cents with net income of 34 cents versus a mean estimate of profit of 24 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.4 billion in revenue this quarter, a decline of 14.6% from the year-ago quarter. Analysts are forecasting total revenue of $5.53 billion for the year, a decline of 8.7% from last year’s revenue of $6.06 billion.

Stock Price Performance: Between July 24, 2012 and October 17, 2012, the stock price rose $2.75 (9.8%), from $27.92 to $30.67. The stock price saw one of its best stretches over the last year between January 6, 2012 and January 17, 2012, when shares rose for seven straight days, increasing 7.8% (+$2.31) over that span. It saw one of its worst periods between April 30, 2012 and May 9, 2012 when shares fell for eight straight days, dropping 13.2% (-$4.21) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.81 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 5.1% in the third quarter of the last fiscal year, 13% in the fourth quarter of the last fiscal year and 4%in the first quarter before dropping in the second quarter.

Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

A Look Back: In the second quarter, profit fell 1.1% to $88 million (50 cents a share) from $89 million (51 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 8.6% to $1.42 billion from $1.56 billion.

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

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