The Dow Chemical Company Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Dow Chemical Company (NYSE:DOW) will unveil its latest earnings on Thursday, February 2, 2012. Dow Chemical produces chemicals, plastic materials, agricultural, advanced materials, and other products and services, including insurance.

The Dow Chemical Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 32 cents per share, a decline of 31.9% 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 42 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 33 cents during the last month. Analysts are projecting profit to rise by 34% versus last year to $2.64.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported net income of 62 cents per share versus a mean estimate of profit of 64 cents per share. In the second quarter, the company beat estimates by 5 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 3.1% in revenue from the year-earlier quarter to $14.19 billion.

Analyst Ratings: Analysts seem relatively indifferent about Dow Chemical Company with 10 of 16 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 50.8% to $900 million (69 cents a share) from $597 million (45 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 17.4% to $15.11 billion from $12.87 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 63.9% in the second quarter and 28.9% in the first quarter.

Revenue has risen the past four quarters. Revenue rose 17.8% in the second quarter from the year earlier, climbed 9.8% in the first quarter from the year-ago quarter and 10.5% in the fourth quarter of the last fiscal year.

Competitors to Watch: E.I. du Pont de Nemours & Co. (NYSE:DD), Huntsman Corporation (NYSE:HUN), Eastman Chemical Company (NYSE:EMN), PolyOne Corporation (NYSE:POL), FMC Corporation (NYSE:FMC), Westlake Chemical Corp. (NYSE:WLK), Rockwood Holdings, Inc. (NYSE:ROC), Albemarle Corporation (NYSE:ALB), Solutia Inc. (NYSE:SOA), and Ashland Inc. (NYSE:ASH).

Stock Price Performance: During November 29, 2011 to January 27, 2012, the stock price had risen $7.93 (31.1%) from $25.53 to $33.46. The stock price saw one of its best stretches over the last year between December 28, 2011 and January 6, 2012 when shares rose for seven-straight days, rising 7.6% (+$2.15) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10-straight days, falling 13.2% (-$3.69) over that span.

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

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