Spartech Corp Second Quarter Earnings Sneak Peek

Spartech Corp (NYSE:SEH) will unveil its latest earnings on Wednesday, June 8, 2011. Spartech Corporation, together with its subsidiaries, is an intermediary processor of engineered thermoplastics, polymeric compounds and concentrates.

Spartech Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst is estimating profit of 6 cents per share, a decline of 53.8% from the same quarter a year ago. Estimates range from net income of one cent per share to profit of 12 cents per share. Over the past three months, the consensus estimate has moved down from 14 cents. The consensus estimate is unchanged from a month ago. For the year, analysts are projecting net income of 31 cents per share, a rise of 93.8% from last year.

Past Earnings Performance: The company fell in line with estimates last quarter after missing in the prior quarter. After falling short of the mean estimate by 5 cents in the fourth quarter of the last fiscal year, the company fell in line with expectations by reporting a loss of 4 cents last quarter.

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Wall St. Revenue Expectations: On average, analysts predict $277.9 million in revenue this quarter, a rise of 3.5% from the year ago quarter. Analysts are forecasting total revenue of $1.08 billion for the year, from last year’s revenue of $1.02 billion.

Analyst Ratings: Analysts seem relatively indifferent about Spartech with three of four analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 27.2% to $234.8 million in first quarter of the last fiscal year. The figure rose 11.5% in fourth quarter of the last fiscal year from the year earlier and climbed 14.6% in third quarter of the last fiscal year from the year-ago quarter.

Spartech’s profit in the latest quarter follows losses in the previous two quarters. The company reported a net loss of $1 million in the first quarter of the last fiscal year and a loss of $55.7 million in the fourth quarter of the last fiscal year.

The company’s gross margin shrank by 4.1 percentage points in the last quarter. Revenue rose 4.3% while cost of sales rose 9.1% to $216.4 million from a year earlier.

Competitors to Watch: Tredegar Corporation (NYSE:TG), Shiner International, Inc. (NASDAQ:BEST), Guanwei Recycling Corp. (NASDAQ:GPRC), Fuwei Films (Hldgs.) Co., Ltd (NASDAQ:FFHL), Ashland Inc (NYSE:ASH), Carlisle Companies (NYSE:CSL),  and Core Molding Tech., Inc. (AMEX:CMT).

Recent Price Movement: From two months ago, the stock price has fallen 63 cents (-8.5%) from $7.44 on April 5, 2011 to $6.80.

(Sources: YahooFinance and Xignite Financials)

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