Earnings Preview for Precision Castparts (PCP)

Precision Castparts (NYSE: PCP) is on tap to report fiscal fourth-quarter 2011 results before the opening bell Thursday, May 12. Analysts are looking for the company to report that earnings grew 13.6% from a year ago to $1.91 per share. That consensus earnings estimate is unchanged in the past 90 days ago. After a string of narrow earnings misses, results were in line with consensus expectations in the previous two quarters.

Portland, Oregon-based Precision Castparts manufactures and sells a wide variety of metal components and products worldwide. It operates in three segments: Investment Cast Products, Forged Products and Fastener Products. Aerospace accounts for more than half of the company's sales, and major clients include General Electric (NYSE: GE). Last week, Precision Castparts announced the acquisition of the assets of PB Fasteners.

The revenue forecast for the fourth quarter calls for $1.6 billion. That is an increase of 13.5% from the same period of last year. For the full year, analysts expect to see revenues of $6.2 billion (up 12.7% from a year ago) and per-share earnings of $7.06 (up 8.1%).

Precision Castparts has a consensus Buy rating and a mean price target of $162.85. The share price reached a 52-week high of $159.36 earlier this week and is about 12% higher than at the beginning of the year. Year to date, the stock has outperformed its industry average and the broader markets.