There are about two weeks to go until Q4 and full year 2011 earnings are released. It's a good time to review.
1. When Q3 earnings were released CEO Dan Amos said he was expecting full year 2011 Operating Earnings to be between $6.30 and $6.37 per diluted share.
2. Since then, on December 16, Bloomberg reported him as saying that sales in Japan are running way ahead of target.
3. The cash dividend was raised last year, the 29th consecutive year of raises. The payout ratio is about 30%, leaving adequate room for share repurchases and more dividend raises going forward.
If full year Operating Earnings come in at $6.30 per diluted share we are looking at a stock tonight that is selling ( 45.18 ) for 7.2 times trailing 12 months Operating Earnings. You can decide for yourself if the greater risk is to the upside, or to the downside?
