The Dow Chemical Company Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Dow Chemical Company (NYSE:DOW) will unveil its latest earnings on Thursday, October 27, 2011. 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 64 cents per share, a rise of 18.5% 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 70 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 65 cents during the last month. For the year, analysts are projecting net income of $2.83 per share, a rise of 43.7% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 5 cents, coming in at profit of 85 cents a share versus the estimate of net income of 80 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 13.7% in revenue from the year-earlier quarter to $14.63 billion.

Analyst Ratings: Analysts seem relatively indifferent about Dow Chemical Company with nine of 15 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 63.9% to $1.07 billion (84 cents a share) from $651 million (50 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 17.8% to $16.05 billion from $13.62 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 28.9% in the first quarter and more than twofold in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 9.8% in the first quarter from the year earlier, climbed 10.5% in the fourth quarter of the last fiscal year from the year-ago quarter and 6.8% in the third 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 July 28, 2011 to October 21, 2011, the stock price had fallen $7.78 (-22.2%) from $35.02 to $27.24. 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% (+$2.82) 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% (-$3.07) over that span. Shares are down $6.19 (-18.5%) year to date.

(Source: Xignite Financials)

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