Precision Castparts Second Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Precision Castparts (NYSE:PCP) will unveil its latest earnings on Thursday, October 25, 2012. Precision Castparts manufactures complex metal components and products and provides investment castings, forgings, and fastener systems for aerospace and industrial gas turbine applications.

Precision Castparts Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $2.35 per share, a rise of 15.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $2.43. Between one and three months ago, the average estimate moved down. It has been unchanged at $2.35 during the last month. Analysts are projecting profit to rise by 19.5% compared to last year’s $10.06.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the first quarter, it reported profit of $2.35 per share against a mean estimate of $2.36. Two quarters ago, it beat expectations by one cent with net income of $2.28.

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A Look Back: In the first quarter, profit rose 19.5% to $341.7 million ($2.33 a share) from $286 million ($1.97 a share) the year earlier, but fell short analyst expectations. Revenue rose 17.6% to $1.97 billion from $1.68 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 12.8% in revenue from the year-earlier quarter to $2.02 billion.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $8.73 (5.6%), from $156.95 to $165.68. The stock price saw one of its best stretches over the last year between December 19, 2011 and December 27, 2011, when shares rose for six straight days, increasing 6.2% (+$9.69) over that span. It saw one of its worst periods between May 2, 2012 and May 10, 2012 when shares fell for seven straight days, dropping 5.6% (-$10.03) over that span.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 14.2% in the third quarter of the last fiscal year and 15.4% in the fourth quarter of the last fiscal year before climbing again in the first quarter.

Analyst Ratings: There are 11 out of 18 analysts surveyed (61.1%) rating Precision Castparts a buy.

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

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