Join        Login             Stock Quote

Clorox (CLX) 2Q Earnings Beat Estimates; Narrows 2013 Profit View

 February 04, 2013 10:14 AM

(By Balaseshan) Clorox Co. (NYSE: CLX), a manufacturer of consumer and professional products, reported a 17.1% increase in quarterly earnings on higher sales and volume, as well as gross margin expansion. Results exceeded Street's expectations.

Earnings for the second quarter were $123 million or $0.93 per share, up from $105 million or $0.79 per share in the same period last year.

Net sales grew 8.5% to $1.325 billion. Sales benefited from an extra shipping day in the quarter and acquisitions made in the last fiscal year. Excluding items, sales rose about 5%.

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.81 per share on revenue of $1.27 billion for the second quarter.

[Related -Trying To Beat The Market Is A Fool's Errand]

The company said sales also benefited from shipments to reset retail shelves with the new concentrated bleach product, as well as shipments of disinfecting products due to cold- and flu-related early third-quarter merchandising events. Volume for the second quarter increased 5%.

Sales from cleaning grew 15% to $425 million, while household sales increased 7% to $357 million. Lifestyle sales rose 8% to $237 million, while International sales increased 3% to $306 million.

Gross margin increased 100 basis points to 42.5% from 41.5% in the year-ago quarter, driven primarily by strong cost savings and the benefit of price increases.

Looking ahead into the fiscal 2013, the company narrowed its earnings guidance to range of $4.25 to $4.35 per share from previous forecast of $4.20 to $4.35 per share. CLX lifted sales growth outlook to range of 3% to 5% from previous estimate of 2% to 4%. Street analysts predict profit of $4.31 per share on revenue growth 3%.

[Related -The Clorox Co (CLX): What To Watch On Investor Day?]

The company said the sales outlook reflects strong results in the first half of the fiscal year, continued category growth, product innovation across many of its brands and the benefit of previously implemented prices increases.

Uncertainty in some international markets, particularly in Venezuela and Argentina, as well as a more challenging comparison to strong sales growth of nearly 6% in the second half of fiscal 2012, continue to be factors in the company's fiscal 2013 outlook, the company noted.

CLX is trading up 1.31% at $80.20 on Monday. The stock has been trading between $66.72 and $80.86 for the past 52 weeks.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageOversold Airline Ready For A Quick Rebound

Trading countertrend moves can be profitable but risky, so it pays to line up as many factors as possible read on...

article imageWhat Is Your Sell Criteria?

Every stock market cycle has its darlings—the stocks investors believe can do no wrong.  I remember 1999 read on...

article imageUS Employment Growth Continued To Slow In April

Company payrolls increased by a lower-than-expected 171,000 last month, the US Labor Department reports–the read on...

article imageMake America Great Again

Our weekly commentaries provide Euro Pacific Capital's latest thinking on developments in the global read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.