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

W.R. Grace & Co. (NYSE:GRA) will unveil its latest earnings on Wednesday, July 25, 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 analyst estimate is for net income of $1.08 per share, a decline of 2.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.17. Between one and three months ago, the average estimate moved down. It also has dropped from $1.13 during the last month. Analysts are projecting profit to rise by 3.8% compared to last year’s $4.09.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting profit of 88 cents per share against a mean estimate of net income of 81 cents per share.

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Stock Price Performance: Between July 13, 2012 and July 19, 2012, the stock price rose $2.92 (5.7%), from $50.88 to $53.80. 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.

Analyst Ratings: Among a limited number of analysts, three rate it as a buy, none rate it as a sell and none rate it a hold to give indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.46 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.

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

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