Clorox Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Clorox (NYSE:CLX) will unveil its latest earnings on Thursday, August 2, 2012. Clorox manufactures consumer products that are sold primarily through mass merchandisers, grocery stores, and other retail outlets.

Clorox Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.27 per share, a decline of 1.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.28. Between one and three months ago, the average estimate moved down. It has risen from $1.26 during the last month. For the year, analysts are projecting profit of $4.05 per share, a decline of 2.6% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of $1.04 per share against a mean estimate of profit of $1.03 per share.

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A Look Back: In the third quarter, profit fell 12.6% to $132 million ($1.01 a share) from $151 million ($1.09 a share) the year earlier, but exceeded analyst expectations. Revenue rose 7.4% to $1.4 billion from $1.3 billion.

Stock Price Performance: Between May 2, 2012 and July 27, 2012, the stock price rose $5.32 (7.8%), from $67.80 to $73.12. The stock price saw one of its best stretches over the last year between May 18, 2012 and May 25, 2012, when shares rose for six straight days, increasing 2.9% (+$1.95) over that span. It saw one of its worst periods between July 28, 2011 and August 4, 2011 when shares fell for six straight days, dropping 10.8% (-$7.87) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.68 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.82 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 30.2% to $2.13 billion while assets rose 7% to $1.44 billion.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 3.1% in the first quarter and 3.6% in the second quarter before climbing again in the third quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 86.6% for the last four quarters.

Wall St. Revenue Expectations: Analysts are projecting a rise of 3.4% in revenue from the year-earlier quarter to $1.53 billion.

Analyst Ratings: There are mostly holds on the stock with 14 of 15 analysts surveyed giving that rating.

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

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