Please ensure Javascript is enabled for purposes of website accessibility

Clarcor Earnings: An Early Look

By Dan Caplinger – Mar 18, 2013 at 10:11AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Let's look forward to this industrial filtration system maker's next earnings report.

Earnings season is winding down, with most companies already having reported their quarterly results. But there are still some companies left to report, and Clarcor (CLC) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Clarcor makes filtration systems for industrial machinery and engines, as well as air cleaners, water filters, and energy-related products. Let's take an early look at what's been happening with Clarcor over the past quarter and what we're likely to see in its quarterly report on Wednesday.

Stats on Clarcor

Analyst EPS Estimate


Change From Year-Ago EPS


Revenue Estimate

$258.5 million

Change From Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Source: Yahoo! Finance.

Will Clarcor clean up this quarter?
Analysts have become more pessimistic about Clarcor's earnings prospects over the past few months. They've cut their earnings-per-share estimates for both the most recent quarter and the full 2013 fiscal year by $0.06. But the stock hasn't missed a beat, rising nearly 19% since mid-December on hopes that improving economic conditions will lift the company's future results.

Throughout much of last year, Clarcor struggled as the slowness of the economic recovery and concerns about future growth prospects in China weighed on the entire market for industrial equipment. The market for over-the-road trucks was particularly weak for Clarcor, and given the fact that those trucks represent about two thirds of its domestic aftermarket, the segment held back Clarcor's overall growth.

Clarcor has been cautiously optimistic about its 2013 prospects, but its guidance back in January came in below where analysts had pegged their estimates. That led to downgrades and cuts in estimates. With Chinese sales of heavy-duty engine filtration systems having fallen 10% during 2012, uncertainty about whether China will recover strongly will continue to weigh on the company.

Clarcor's brightest spot is almost certainly its energy-filtration segment, which has shown huge capacity for growth. With so much energy-production activity going on, the filters Clarcor makes have seen greater demand, with sales rising 7% in 2012 compared to the previous year. 3M's (MMM -1.60%) decision to buy Ceradyne was motivated in part by its expectations of growth in its ceramic filter sales to the energy industry. General Electric (GE -1.31%) has also incorporated energy-related filtration into its larger-scale push into energy services, complementing its air filtration systems. The presence of these giants shows just how much competition Clarcor faces in the space, but the growth prospects are worth the challenge.

In Clarcor's quarterly report, look for more information about the company's decision to invest $40 million in a new distribution center to support its aftermarket engine filter business. Although the facility won't be up and running until 2015, the decision indicates Clarcor's optimism about its future business.

Click here to add Clarcor to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends 3M. The Motley Fool owns shares of General Electric. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

CLARCOR Inc. Stock Quote
General Electric Company Stock Quote
General Electric Company
$61.91 (-1.31%) $0.82
3M Company Stock Quote
3M Company
$110.50 (-1.60%) $-1.80

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.