Plum Creek Timber Co., Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Plum Creek Timber Co., Inc. (NYSE:PCL) will unveil its latest earnings on Monday, October 24, 2011. 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 estimate of analysts is for profit of 30 cents per share, a rise of 50% 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 41 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 30 cents during the last month. For the year, analysts are projecting net income of $1.19 per share, a decline of 10.5% from last year.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the second quarter, it missed the mark by one cent as a result of reporting profit of 27 cents against an estimate of net income of 28 cents per share. In the first quarter, the company fell short of forecasts by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $298.8 million in revenue this quarter, a rise of 15.4% from the year ago quarter. Analysts are forecasting total revenue of $1.16 billion for the year, a decline of 2.5% from last year’s revenue of $1.19 billion.

Analyst Ratings: Analysts seem relatively indifferent about Plum Creek Timber with five of nine analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 25.7% to $44 million (27 cents a share) from $35 million (21 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 10.1% to $284 million from $258 million.

Key Stats:

The increase in profit in the second quarter came after net income fell in the previous quarter. In the first quarter, net income fell 56.3%.

Revenue rose in the second quarter after seeing a drop the quarter before. In the first quarter, revenue fell 13.2%.

Competitors to Watch: Potlatch Corporation (NYSE:PCH), Rayonier Inc. (NYSE:RYN), Weyerhaeuser Company (NYSE:WY), Deltic Timber Corporation (NYSE:DEL), Universal Forest Products, Inc. (NASDAQ:UFPI), Louisiana-Pacific Corp. (NYSE:LPX), Pittsburgh & West Virginia Railroad (AMEX:PW), West Fraser Timber Co. Ltd. (NYSE:WFT), and Masisa S.A. (MYSZY).

Stock Price Performance: During July 25, 2011 to October 18, 2011, the stock price had fallen $4.42 (-11.1%) from $40 to $35.58. The stock price saw one of its best stretches over the last year between January 19, 2011 and January 27, 2011 when shares rose for seven-straight days, rising 6.6% (+$2.55) over that span. It saw one of its worst periods between July 21, 2011 and August 4, 2011 when shares fell for 11-straight days, falling 12.1% (-$4.94) over that span. Shares are down 71 cents (-2%) year to date.

(Source: Xignite Financials)

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