W.R. Grace & Co. Earnings Sneak Peek

W.R. Grace & Co. (NYSE:GRA) will unveil its latest earnings on Wednesday, October 24, 2012. 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. .

W.R. Grace & Co. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1 per share, a decline of 13.8% 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 $1.08. Between one and three months ago, the average estimate moved down. It has been unchanged at $1 during the last month. Analysts are projecting profit to rise by 4.1% compared to last year’s $4.10.

Past Earnings Performance: Last quarter, the company beat estimates by 6 cents, coming in at net income of $1.14 a share versus the estimate of profit of $1.08 a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $5.24 (9.3%), from $56.29 to $61.53. The stock price saw one of its best stretches over the last year between January 23, 2012 and February 1, 2012, when shares rose for eight straight days, increasing 8.7% (+$4.37) over that span. It saw one of its worst periods between May 8, 2012 and May 17, 2012 when shares fell for eight straight days, dropping 15.1% (-$8.90) over that span.

A Look Back: In the second quarter, profit fell 8.6% to $69.3 million (90 cents a share) from $75.8 million ($1 a share) the year earlier, but exceeded analyst expectations. Revenue was unchanged at $826.7 million.

Analyst Ratings: With four analysts rating the stock a buy, none rating it a sell and none rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.62 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 3.46 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 4.8% to $2.23 billion while liabilities rose by 0.1% to $618 million.

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

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