W.R. Grace & Co. Earnings Cheat Sheet: Earnings Higher Than Expected

W.R. Grace & Co. (NASDAQ:GRA) reported net income above Wall Street’s expectations for the second quarter. W.R. Grace & Company iis engaged in the production and sale of specialty chemicals and specialty materials on a global basis through its two operating segments, Grace Davison and Grace Construction Products.

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W.R. Grace Earnings Cheat Sheet for the Second Quarter

Results: Net income for the specialty chemicals company rose to $75.8 million ($1 per share) vs. $51 million (69 cents per share) in the same quarter a year earlier. This marks a rise of 48.6% from the year earlier quarter.

Revenue: Rose 20.6% to $826.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: GRA reported adjusted net income of $1.11 per share. By that measure, the company beat the mean estimate of 89 cents per share.

Quoting Management: “I am pleased with how well the Grace team is executing in today’s dynamic operating environment,” said Fred Festa, Grace’s Chairman, President and Chief Executive Officer. “The investments we have made are making a significant difference to our results, giving us the confidence to increase our outlook for 2011.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 24 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 10 cents in the third quarter of the last fiscal year.

Revenue has now gone up for three straight quarters. In the first quarter, revenue rose 13.1% to $695.7 million while the figure rose 2.2% in the fourth quarter of the last fiscal year from the year earlier.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the first quarter, net income fell 3.7% while the figure dropped in the fourth quarter of the last fiscal year.

Gross margins grew 1.1 percentage points to 36.8%. The growth seemed to be driven by increased revenue, as the figure rose 20.6% from the year earlier quarter while costs rose 18.6%.

Competitors to Watch: The Dow Chemical Company (NYSE:DOW), Innospec Inc. (NASDAQ:IOSP), Albemarle Corporation (NYSE:ALB), Rockwood Holdings, Inc. (NYSE:ROC), Sigma-Aldrich Corporation (NASDAQ:SIAL), Celanese Corporation (NYSE:CE), Ferro Corporation (NYSE:FOE), Huntsman Corporation (NYSE:HUN), and Lubrizol Corporation (NYSE:LZ).

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(Source: Xignite Financials)