W.R. Grace & Co. Earnings: Powering Ahead

W.R. Grace & Co. (NYSE:GRA) reported its results for the fourth quarter. W.R. Grace & Company is 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 Fourth Quarter

Results: Net income for the specialty chemicals company rose to $58.1 million (77 cents per share) vs. $44.9 million (60 cents per share) in the same quarter a year earlier. This marks a rise of 29.4% from the year earlier quarter.

Revenue: Rose 19.1% to $825.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: GRA reported adjusted net income of 89 cents per share. By that measure, the company beat the mean estimate of 87 cents per share.

Quoting Management: “I am very pleased with our performance this quarter. Both segments had a solid finish to 2011, and we have good momentum as we start 2012,” said Fred Festa, Grace’s Chairman and Chief Executive Officer. “Our earnings growth reflects the high value of our products and strong execution by our business teams.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 48.1% and in the second quarter, the figure rose 48.6%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the third quarter, by 22 cents in the second quarter, and by 24 cents in the first quarter.

Revenue has risen the past four quarters. Revenue increased 26.7% to $864.2 million in the third quarter. The figure rose 20.6% in the second quarter from the year earlier and climbed 13.1% in the first quarter from the year-ago quarter.

The company’s cost of sales rose 19.3% from a year earlier. Last quarter, cost of sales was 65.2% of revenue, similar to a year earlier.

Looking Forward: Expectations for the first quarter of the next fiscal year have not changed from 77 cents. The average estimate for the fiscal year has remained at $3.93 per share.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com