CLARCOR Inc. Earnings: Profit Rises by Double-Figures for Fifth Consecutive Quarter

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

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CLARCOR Earnings Cheat Sheet for the Fourth Quarter.

Results: Net income for CLARCOR Inc. rose to $37.2 million (73 cents per share) vs. $29 million (57 cents per share) in the same quarter a year earlier. This marks a rise of 28.4% from the year earlier quarter.

Revenue: Rose 11.6% to $307.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CLC beat the mean analyst estimate of 68 cents per share. Analysts were expecting revenue of $305.5 million.

Quoting Management: Chris Conway, CLARCOR’s Chief Executive Officer, commented, “We capped off another successful year with record fourth quarter results. We are particularly proud of our 17.8% operating margin in the fourth quarter–almost two percentage points higher than last year’s fourth quarter and our highest quarterly operating margin since 1991. This operating margin improvement combined with our continued sales growth facilitated our fourth quarter being the eighth consecutive quarter where we exceeded our previous year’s quarterly diluted earnings per share by at least 15%. Once again, this consistent success is a result of the continued execution of our long-term strategy including a commitment to sustainable sales growth, cost containment and continuous improvement.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 13.2% and in the second quarter, the figure rose 37.4%.

Revenue has risen the past four quarters. Revenue increased 8.4% to $284.8 million in the third quarter. The figure rose 11.9% in the second quarter from the year earlier and climbed 14.2% in the first quarter from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 63 cents versus a mean estimate of net income of 66 cents per share.

Margins rose in the third quarter after falling the quarter before. Gross margin rose 1.4 percentage points to 34.8% from the quarter earlier quarter. In the second quarter, the figure rose 1.2 percentage points to 33.7% from the year earlier quarter.

Looking Forward: The average estimate for the first quarter of the next fiscal year is steady at 48 cents a share. The average estimate hasn’t changed from $2.37 per share for the fiscal year.

Competitors to Watch: Pall Corporation (NYSE:PLL), ESCO Technologies Inc. (NYSE:ESE), PMFG Inc (NASDAQ:PMFG), Ball Corporation (NYSE:BLL), Flanders Corporation (FLDR), Illinois Tool Works Inc. (NYSE:ITW), Silgan Holdings Inc. (NASDAQ:SLGN), Federal-Mogul Corporation (NASDAQ:FDML), Crown Holdings, Inc. (NYSE:CCK), and Bway Holding Company (BWY).

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com