Plum Creek Timber Co. Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Plum Creek Timber Co. Inc. (NYSE:PCL) will unveil its latest earnings on Monday, July 30, 2012. Plum Creek Timber is a real estate investment trust which owns and manages timberlands and produces lumber products, plywood, medium density fiberboard, and related by-products.

Plum Creek Timber Co. Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 18 cents per share, a decline of 33.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 28 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 18 cents during the last month. Analysts are projecting profit to rise by 7.6% compared to last year’s $1.10.

Past Earnings Performance: The company is hoping to beat estimates after missing the mark for two straight quarters. Last quarter, it reported net income of 18 cents per share against an estimate of profit of 23 cents per share. The quarter before that, it missed forecasts by one cent.

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A Look Back: In the first quarter, profit fell 23.7% to $29 million (18 cents a share) from $38 million (23 cents a share) the year earlier, missing analyst expectations. Revenue rose 22.5% to $337 million from $275 million.

Stock Price Performance: Between May 25, 2012 and July 24, 2012, the stock price had risen $2.74 (7.5%), from $36.71 to $39.45. The stock price saw one of its best stretches over the last year between January 4, 2012 and January 19, 2012, when shares rose for 11 straight days, increasing 8.8% (+$3.22) over that span. It saw one of its worst periods between May 7, 2012 and May 18, 2012 when shares fell for 10 straight days, dropping 7.1% (-$2.78) over that span.

Wall St. Revenue Expectations: On average, analysts predict $273.3 million in revenue this quarter, a decline of 3.8% from the year-ago quarter. Analysts are forecasting total revenue of $1.23 billion for the year, a rise of 5.1% from last year’s revenue of $1.17 billion.

Key Stats:

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 25.7% in the second quarter of the last fiscal year, 56.3% in the third quarter of the last fiscal year and 3.4% in the fourth quarter of the last fiscal year before declining in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.58 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

Analyst Ratings: With three analysts rating the stock as a buy, two rating it as a sell and five rating it as a hold, there are indications of a bullish outlook.

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

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