ZEP Earnings Preview: Get Ahead of the Analysts

ZEP (NYSE:ZEP) will report earnings before markets open on Tuesday, July 2nd. Zep, Inc. manufactures specialty chemical products. The Company produces detergents, disinfectants, hand cleaners, degreasers, deodorants, lubricants, floor finishes, and pest control products.

Here is your Cheat Sheet to Zep Earnings:

Earnings Expectations: Analysts expect earnings of $0.42 per share on revenues of $196.52 million. Currently, the company’s P/E ratio stands at 16.68.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.41 to a profit $0.42. For the current year, the average estimate is a profit of $1.16, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Zep has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 575 501 569 646 654
Diluted EPS ($) 0.77 0.43 0.61 0.78 0.98

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter May. 31, 2012 Aug. 31, 2012 Nov. 30, 2012 Feb. 28, 2013
Revenue ($) in millions 176.63 171.70 158.03 163.39
Diluted EPS ($) 0.39 0.33 0.16 0.12

Past Performance:
Zep has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)