Sneak Peek: Clorox (CLX) Will Set The Tone For Consumer Staples

Consensus Estimates (High/Mean/Low): $1.23 / $1.199 / $1.16

Oakland, CA based Clorox Co. (NYSE: CLX) reports FQ4 earnings this Tuesday, August 3, before the bell.  This Q is definitely one that’s worth paying attention to, as they should give us a solid glance into the earnings picture for the entire consumer staples space.  The conference call is currently scheduled for 1:20 PM EST on the day of the report.

CLX has beaten estimates in 10 of the past 11 quarters, including the past eight in a row.  Mean estimates of $1.199 are in-line with last year’s FQ4 report of $1.20 and a slight increase of last Q’s $1.16.

CLX is a leading manufacturer and marketer of consumer products, boasting 8,300 employees and FY09 revenues of $5.5 billion.  The company markets some of consumers’ most trusted and recognized brand names, including its namesake bleach and cleaning products; Green Works natural cleaning and laundry products; Kingsford charcoal; Hidden Valley and K C Masterpiece dressings and sauces; Brita water-filtration systems; Glad bags, wraps and containers; and Burt’s Bees natural personal care products.  The company’s products are manufactured in more than two dozen countries and sold in more than 100 countries.

CLX is also the proud owner of a very constructive long-term chart, as it is threatening to break out of a 3+ year range.  The stock hit a high of $69.36 during May ’07 before embarking on a long-term down-trend that eventually pressured shares down to $45.67 at the March ’09 lows.  Since then, shares have consistently rallied, not falling victim to 2010’s two major dips and hitting 52-week highs over the past few months.  The stock finished up last week at $64.88.  A breakout through $69.46 would be a very bullish signal.

Add in a 3.39% dividend and a 15X multiple on dependable near-10% YoY EPS increases going out as far as the eye can see, and CLX is shaping up to be a very solid buy for anyone looking to add some safety names to their portfolio.

Disclosure: No holdings in CLX.

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