Ashland Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

Investors are on the edge of their collective seats, hoping that Ashland (NYS: ASH) will top analyst expectations for the fifth consecutive quarter. The company will unveil its latest earnings on Tuesday. Ashland is a global specialty chemicals company that provides products, services, and solutions that meet customer needs throughout a variety of industries.

What analysts say:

  • Buy, sell, or hold?: Analysts are very bullish on this stock, unanimously backing it as a buy. Analysts like Ashland better than competitor Dow Chemical overall. Five out of 15 analysts rate Dow Chemical a buy compared to nine of nine for Ashland. Analysts' rating of Ashland has stayed constant from three months prior.
  • Revenue forecasts: On average, analysts predict $2.08 billion in revenue this quarter. That would represent a rise of 33.3% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $1.38 per share. Estimates range from $1.35 to $1.40.

What our community says:
CAPS All-Stars are enthusiastically backing the stock, with 92.7% awarding it an outperform rating. The greater community concurs with the All-Stars, as 90% give it a rating of outperform. Despite the majority sentiment in favor of Ashland, the stock has a middling CAPS rating of three out of five stars.


Management:

Now let's look at how efficient management is at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. Ashland has seen decreasing net margins year-over-year for the last three quarters. Net margins reflect what percentage of each dollar earned by the company becomes profit. Here is how Ashland has been doing for the last four quarters:

Quarter

Q1

Q4

Q3

Q2

Gross Margin

27%

19.9%

25.9%

27.1%

Operating Margin

7.5%

(11.8%)

6.3%

7.8%

Net Margin

3.2%

(6.1%)

5.2%

22.7%

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add Ashland now.

The Motley Fool has a disclosure policy.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

At the time this article was published

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners