CLARCOR Earnings: Everything You Must Know Now

CLARCOR Inc. (NYSE:CLC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

CLARCOR Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 6.94% to $0.67 in the quarter versus EPS of $0.72 in the year-earlier quarter.

Revenue: Rose 0.83% to $289.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CLARCOR Inc. reported adjusted EPS income of $0.67 per share. By that measure, the company missed the mean analyst estimate of $0.73. It missed the average revenue estimate of $309.44 million.

Quoting Management: Chris Conway, CLARCOR’s Chief Executive Officer and Chairman, commented, “Our third quarter results were negatively impacted by a $4.6 million non-cash loss on disposal of equipment at our HVAC filtration operating unit and a $3.1 million non-cash pension charge pursuant to last year’s retirement of our former CEO and Chairman. The equipment disposed of at our HVAC filter operations was initially designed and built to automate the production of low-end disposable air filters consistent with our ‘Project 14’ strategy developed in 2007. However, our current strategy is focused on higher-end air filtration products. In addition, we have recently redesigned our low-end disposable filter products and developed technology which now allows us to manufacture these filters more cost effectively than with the equipment designed pursuant to ‘Project 14.’ As a result, in the third quarter we reached the decision to dispose of this equipment. Adjusted for the financial impact of this $4.6 million non-cash loss on disposal and the $3.1 million non-cash charge pursuant to the final settlement accounting for the pension obligation, diluted earnings per share would have increased 12% from last year’s third quarter, and our operating margin would have increased 1.1 percentage points to 17.2%. Our third quarter diluted earnings per share, as adjusted, would have been a record third quarter high, and our operating margin, as adjusted, would have been the highest third quarter operating margin in almost twenty years.”

Key Stats (on next page)…

Revenue increased 0.53% from $287.58 million in the previous quarter. EPS increased 0% from $0.67 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.54 to a profit $0.53. For the current year, the average estimate is a profit of $2.52, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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