Earnings Preview: Precision Castparts EPS, Revenue Expected to Rise from Previous Quarter

Precision Castparts PCP unveils its next round of earnings this Thursday, July 28, 2011. Here's Benzinga's essential guide to Precision Castparts' first quarter earnings report.

Earnings and Revenue:

Ahead of the company's earnings announcement, analysts are expecting a positive EPS reading of $1.95 per share and revenues of $1.68 billion. Precision Castparts' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a positive EPS of $1.65 per share on revenues of $1.45 billion. Can Precision Castparts manage the estimated 18.2% rise in EPS and 15.9% increase in revenues from the year-ago quarter as analysts are predicting? We'll have to wait until Thursday to find out.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter	Q4	Q3	Q2	Q1
EPS Estimate	$1.91	$1.79	$1.68	$1.69
EPS Actual	$1.87	$1.80	$1.70	$1.65

Stock Performance:

Shares of Precision Castparts were trading at $165.40 as of July 22, 2011. Shares are up 18.9% year to date. For a full 12 months, the return has risen by 27.3%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Precision Castparts is a Moderate Buy. This rating hasn't budged over the past three months.

Competitors:

Wondering how some of the other industrials companies are doing? Here are a few of Precision Castparts' peers in that sector.

• Alcoa AA: Hold with a $0.32 recent quarter EPS
• Allegheny Technologies ATI: Moderate Buy with a $0.54 recent quarter EPS
• Haynes International (HAYN): Moderate Buy with a $0.51 recent quarter EPS

Precision Castparts is in the metal procurement and fabrication industry, which has experienced price/earnings growth of 1.3%.

Finally, a description of the company's main areas of operation: Precision Castparts manufactures complex metal components and products and provides investment castings, forgings and fasteners/fastener systems for aerospace and industrial gas turbine applications.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming Precision Castparts earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

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