W.R. Grace & Co. Third Quarter Earnings Sneak Peek

W.R. Grace & Co. (NYSE:GRA) will unveil its latest earnings on Tuesday, October 25, 2011. 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 $1.06 per share, a rise of 41.3% 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 90 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.06 during the last month. Analysts are projecting profit to rise by 47.1% versus last year to $3.87.

Past Earnings Performance: Last quarter, the company beat estimates by 22 cents, coming in at net income of $1.11 a share versus the estimate of profit of 89 cents a share. It marked the fourth straight quarter of beating estimates.

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Analyst Ratings: The limited number of analysts covering the stock seem bullish with three analysts rating it as a buy, none rating it as a sell and none rating it as a hold.

A Look Back: In the second quarter, profit rose 48.6% to $75.8 million ($1 a share) from $51 million (69 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 20.6% to $826.4 million from $685 million.

Key Stats:

The increase in profit in the second quarter broke a streak of two consecutive quarters of year-over-year profit decreases. The figure dropped 3.7% in the first quarter and 3.2% in the fourth quarter of the last fiscal year.

Revenue has gone up for three straight quarters. It rose 13.1% in the first quarter from the year earlier and 2.2% in the fourth quarter of the last fiscal year.

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), BASF SE (BASFY), Ferro Corporation (NYSE:FOE), Huntsman Corporation (NYSE:HUN), and Lubrizol Corporation (NYSE:LZ).

Stock Price Performance: During July 26, 2011 to October 19, 2011, the stock price had fallen $13.53 (-26.2%) from $51.65 to $38.12. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 6, 2011 when shares rose for eight-straight days, rising 13% (+$5.54) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven-straight days, falling 10.5% (-$4.93) over that span. Shares are up $2.99 (+8.5%) year to date.

(Source: Xignite Financials)

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