The Dow Chemical Company Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Dow Chemical Company (NYSE:DOW) will unveil its latest earnings on Wednesday, July 27, 2011. The Dow Chemical Company 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 net income of 80 cents per share, a rise of 48.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 78 cents. Between one and three months ago, the average estimate moved up, but has dropped from 83 cents during the last month. For the year, analysts are projecting profit of $2.94 per share, a rise of 49.2% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 82 cents per share versus a mean estimate of profit of 67 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $14.75 billion in revenue this quarter, a rise of 8.3% from the year ago quarter. Analysts are forecasting total revenue of $58.37 billion for the year, a rise of 8.8% from last year’s revenue of $53.67 billion.

Analyst Ratings: Analysts are bullish on Dow Chemical Company as seven analysts rate it as a buy, two rate it as a sell and five rate it as a hold.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 9.8% to $14.73 billion in first quarter. The figure rose 10.5% in the fourth quarter of the last fiscal year from the year earlier, climbed 6.8% in the third quarter of the last fiscal year from the year-ago quarter and 20.3% in the second 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 April 26, 2011 to July 21, 2011, the stock price had fallen $3.94 (-9.9%) from $39.69 to $35.75. The stock price saw one of its best stretches over the last year between January 28, 2011 and February 8, 2011 when shares rose for eight-straight days, rising 8.2% (+$2.85) over that span. It saw one of its worst periods between March 8, 2011 and March 16, 2011 when shares fell for seven-straight days, falling 8.2% (-$3.10) over that span. Shares are up $1.99 (+5.9%) year to date.

(Source: Xignite Financials)

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