CLARCOR Earnings Cheat Sheet: Misses Street Estimates

Falling revenue did not prevent CLARCOR Inc. (NYSE:CLC) from reporting a profit boost in the second quarter. Clarcor conducts its business in three industry segments: engine and mobile filtration, industrial and environmental filtration, and packaging.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

CLARCOR Inc. Earnings Cheat Sheet

Results: Net income for CLARCOR Inc. rose to $32.9 million (65 cents per share) vs. $32.8 million (64 cents per share) in the same quarter a year earlier. This marks a rise of 0.4% from the year-earlier quarter.

Revenue: Fell 1.3% to $284.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CLARCOR Inc. fell short of the mean analyst estimate of 70 cents per share. It fell short of the average revenue estimate of $305.7 million.

Quoting Management: Chris Conway, CLARCOR’s Chief Executive Officer, commented, “We experienced headwinds across our top-line in the second quarter, as sales growth in several markets including our global natural gas filtration market were more than offset by the negative effects of foreign currency exchange rates and softness in several markets including our U.S. heavy-duty engine aftermarket filtration business, our China first-fit OEM heavy-duty engine filtration business and our Packaging segment. However, our execution remained strong as we improved our operating margin to 17.2% from 16.9% in the second quarter of last year. Our 34.5% gross margin percentage was consistent with last year-our highest second quarter gross margin percentage in the last twenty years. Our selling and administrative expenses as a percentage of net sales declined 0.3 percentage points as we continued our culture of managing administrative expenses while supporting profitable growth. We anticipate this execution to continue throughout 2012 as we expect our full year operating margin to improve from the record 16.1% operating margin from last year.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 7.3% and in the fourth quarter of the last fiscal year, the figure rose 28.4%.

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 11.9%.

For two quarters in a row, the company has come in under analyst estimates. In the first quarter, it missed expectations by one cent with net income of 46 cents versus a mean estimate of net income of 47 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 71 cents a share to 70 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $2.68 a share to $2.66 over the last ninety days.

Competitors to Watch: Pall Corporation, ESCO Technologies Inc., PMFG Inc, Ball Corporation, Flanders Corporation, Illinois Tool Works Inc., Silgan Holdings Inc., Federal-Mogul Corporation, Crown Holdings, Inc., and Bway Holding Company.

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

Don’t Miss These Additional Hot Stories:

Will Europe Provide the Final Catalyst for Gold and Silver?

Are Ford Motor and Coca-Cola Friending Facebook for the Long-Term?

Is Apple Fearful of Microsoft’s New Tablet?