Clorox Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Clorox (NYSE:CLX) will unveil its latest earnings tomorrow, Monday, February 4, 2013. 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 profit of 81 cents per share, a decline of 1.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 80 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. Analysts are projecting profit to rise by 1.4% compared to last year’s $4.30.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 6 cents, reporting net income of $1.01 per share against a mean estimate of profit of 95 cents per share.

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Stock Price Performance: Between October 31, 2012 and January 29, 2013, the stock price rose $6.52 (9%), from $72.30 to $78.82. The stock price saw one of its best stretches over the last year between September 27, 2012 and October 8, 2012, when shares rose for eight straight days, increasing 3.8% (+$2.72) over that span. It saw one of its worst periods between December 18, 2012 and December 28, 2012 when shares fell for eight straight days, dropping 5% (-$3.81) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 4.1% in revenue from the year-earlier quarter to $1.27 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.01 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Here’s how Clorox traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

clx

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 3.6% in the second quarter of the last fiscal year, 7.4% in the third quarter of the last fiscal year and 4% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 98.2% for the last four quarters.

A Look Back: In the first quarter, profit rose 2.3% to $133 million ($1.01 a share) from $130 million (98 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 2.5% to $1.34 billion from $1.3 billion.

Analyst Ratings: There are mostly holds on the stock with 13 of 14 analysts surveyed giving that rating.

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