S&P 500 (NYSE:SPY) component Praxair, Inc. (NYSE:PX) will unveil its latest earnings on Wednesday, April 25, 2012. Praxair produces and sells atmospheric, process and specialty gases, and high-performance surface coatings to industrial clients.
Praxair, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.36 per share, a rise of 5.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.41. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.36 during the last month. Analysts are projecting profit to rise by 7.4% versus last year to $5.83.
Past Earnings Performance: Last quarter, the company missed estimates by one cent, coming in at profit of $1.36 per share versus a mean estimate of net income of $1.37 per share. In the third quarter of the last fiscal year, the company beat estimates by one cent.
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Wall St. Revenue Expectations: On average, analysts predict $2.83 billion in revenue this quarter, a rise of 4.8% from the year-ago quarter. Analysts are forecasting total revenue of $11.9 billion for the year, a rise of 5.8% from last year’s revenue of $11.25 billion.
Analyst Ratings: Of the 17 analysts surveyed, nine (52.9%) rate Praxair a buy. This falls short of the analyst rating of three competitors, which average 73.5% buy ratings.
A Look Back: In the fourth quarter of the last fiscal year, profit rose more than threefold to $420 million ($1.38 a share) from $133 million (43 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 6.6% to $2.8 billion from $2.62 billion.
After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 14.6% in the second quarter of the last fiscal year and 13.8% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.3% in the first quarter of the last fiscal year, 13.1% in the second quarter of the last fiscal year and 14.1% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.
Stock Price Performance: Between January 24, 2012 and April 19, 2012, the stock price rose $5.27 (4.9%), from $108.55 to $113.82. The stock price saw one of its best stretches over the last year between August 22, 2011 and August 31, 2011, when shares rose for eight straight days, increasing 10.7% (+$9.41) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven straight days, dropping 5.1% (-$5.25) over that span.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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