CLARCOR Inc. Earnings Cheat Sheet: Five Straight Quarters of Double-Digit Growth

CLARCOR Inc. (NYSE:CLC) reported net income above Wall Street’s expectations for the second quarter. Clarcor Inc conducts its business in three industry segments: engine & mobile filtration, industrial & environmental filtration and packaging.

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CLARCOR Earnings Cheat Sheet for the Second Quarter

Results: Net income for CLARCOR Inc. rose to $32.8 million (64 cents/share) vs. $23.9 million (47 cents/share) in the same quarter a year earlier. A rise of 37.4% from the year earlier quarter.

Revenue: Rose 11.9% to $288.5 million YoY.

Actual vs. Wall St. Expectations: CLC beat the mean analyst estimate of 56 cents/share. Estimates ranged from 56 cents per share to 58 cents per share. Analysts were expecting revenue of $282.8 million.

Quoting Management: Norm Johnson, CLARCOR’s Chairman and Chief Executive Officer, said, “The second quarter continued a string of successful quarters at CLARCOR. Our second quarter diluted earnings per share of $0.64 were not only a record high for a CLARCOR second quarter but were a record high for any quarter — exceeding the previous high of $0.57 in the fourth quarter of 2010. I am particularly proud of our continuing success because it is driven by strong, consistent growth and improving margins across all of our reporting segments. Of special note, improvement at our Industrial/Environmental Filtration segment continued in the second quarter as it generated a 12.1% operating margin, keeping us solidly on track to exceed the 10% operating margin target for the full year.”

Key Stats:

The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 14%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 17.6% from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.6 percentage points to 34.5% from the year earlier quarter. Over that span, margins have grown on average 1.8 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three-straight quarters. In the first quarter, net income rose 47.2% and in the fourth quarter of the last fiscal year, the figure rose 17.5%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by one cent in first quarter and by one cent in fourth quarter of the last fiscal year.

Competitors to Watch: Pall Corporation (NYSE:PLL), ESCO Technologies Inc. (NYSE:ESE), PMFG Inc (NASDAQ:PMFG), Ball Corporation (NYSE:BLL), Illinois Tool Works Inc. (NYSE:ITW), Silgan Holdings Inc. (NASDAQ:SLGN), Federal-Mogul Corporation (NASDAQ:FDML), General Electric (NYSE:GE), 3M (NYSE:MMM), Danaher (NYSE:DHR), Thermo Fisher (NYSE:TMO),  and Crown Holdings, Inc. (NYSE:CCK).

Stock Performance: Shares of CLC are up over 2% after hours.

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(Source: Xignite Financials)

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