Precision Castparts Corp. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Precision Castparts Corp. (NYSE:PCP) will unveil its latest earnings on Thursday, January 26, 2012. Precision Castparts manufactures complex metal components and products and provides investment castings, forgings, and fastener systems for aerospace and industrial gas turbine applications.

Precision Castparts Corp. Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $2.21 per share, a rise of 22.8% 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 $2.26. Between one and three months ago, the average estimate moved down. It has been unchanged at $2.21 during the last month. Analysts are projecting profit to rise by 22.5% versus last year to $8.59.

Past Earnings Performance: Last quarter, the company fell short of estimates by 2 cents, coming in at profit of $2.03 per share against a mean estimate of net income of $2.05. The company topped expectations in the first quarter.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 20.1% in revenue from the year-earlier quarter to $1.91 billion.

Analyst Ratings: Analysts are bullish on this stock with 14 analysts rating it as a buy, none rating it as a sell and five rating it as a hold.

A Look Back: In the second quarter, profit rose 17.4% to $294.7 million ($2.03 a share) from $251 million ($1.75 a share) the year earlier, but fell short analyst expectations. Revenue rose 18.7% to $1.79 billion from $1.51 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 16.7%, with the biggest boost coming in the most recent quarter when revenue rose 18.7% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 21.7% in the first quarter and 12.4% in the fourth quarter of the last fiscal year.

Competitors to Watch: MS International plc (NYSE:MSI), Ladish Co., Inc. (NASDAQ:LDSH), Alcoa Inc. (NYSE:AA), Haynes International, Inc. (NASDAQ:HAYN), Allegheny Tech. Inc. (NYSE:ATI), Chicago Rivet & Machine Co. (AMEX:CVR) and United Technologies Corp. (NYSE:UTX).

Stock Price Performance: During November 21, 2011 to January 20, 2012, the stock price had risen $19.56 (12.4%) from $157.60 to $177.16. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 6, 2011 when shares rose for eight-straight days, rising 10.6% (+$16.22) over that span. It saw one of its worst periods between February 14, 2011 and February 24, 2011 when shares fell for eight-straight days, falling 7.3% (-$11) over that span.

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

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