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S&P 500 (NYSE:SPY) component MeadWestvaco (NYSE:MWV) will unveil its latest earnings on Wednesday, July 25, 2012. MeadWestvaco provides packaging solutions to clients in the healthcare, personal and beauty care, food, beverage, tobacco, media and entertainment, and home and garden industries.
MeadWestvaco Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 39 cents per share, a decline of 27.8% 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 50 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 40 cents during the last month. Analysts are projecting profit to rise by 24% versus last year to $1.46.
Last quarter, the company came in at profit of 34 cents per share against a mean estimate of net income of 24 cents per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by 3 cents.
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A Look Back: In the first quarter, profit fell 24.6% to $49 million (28 cents a share) from $65 million (38 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 4% to $1.42 billion from $1.36 billion.
Wall St. Revenue Expectations: Analysts predict a decline of 8.3% in revenue from the year-earlier quarter to $1.43 billion.
Stock Price Performance: Between April 24, 2012 and July 19, 2012, the stock price fell $2.35 (-7.4%), from $31.56 to $29.21. The stock price saw one of its best stretches over the last year between January 6, 2012 and January 17, 2012, when shares rose for seven straight days, increasing 7.8% (+$2.31) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine straight days, dropping 12.1% (-$4.04) over that span.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 0.3% in the second quarter of the last fiscal year, 5.1% in the third quarter of the last fiscal year and 13% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and one 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 1.5 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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