The Clorox Co.
) is set to report its third-quarter fiscal 2013 results on May
1. The company's earnings for the last reported quarter jumped
13.9% from the year-ago quarter's earnings to 90 cents and beat
the Zacks Consensus Estimate of 81 cents. Let's see how things
are shaping up for this announcement.
Growth Factors in the Past Quarter
The company's earnings per share in second-quarter fiscal 2013
benefited from improvements in revenues as well as gross margins,
offset by higher selling and administration expenses as it
continues to invest in information technology (IT) systems. We
believe Clorox's diversified portfolio of brands, positions it
well to generate above-average industry growth amid a challenging
environment. The company's rigorous research & development
process, marketing strategies, financial control, and operating
leverage further strengthen its brands and facilitate it to
generate long-term profitability, which is well evident from its
record of beating the quarterly earnings expectations.
Our proven model does not conclusively shows that Ross Stores is
likely to beat the earnings this quarter. A stock needs to have
both a positive Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 to surpass the earnings
estimates. However, this is not the case here, owing to the
ESP for Clorox is 0.00% since the Most Accurate Estimate stands
at $1.06, which is in line with the Zacks Consensus Estimate.
Zacks #3 Rank (Hold):
Clorox's Zacks Rank #3 (Hold) lowers the predictive power of ESP
because the Zacks Rank #3, when combined with a 0.00% ESP, makes
surprise prediction difficult. We caution against stocks with
Zacks #4 and #5 Ranks (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Other Stocks to Consider
There are other companies you may want to consider in the
retailing sector. Our model shows that the following have the
right combination of elements to post an earnings beat this
Church & Dwight Co. Inc.
) has an Earnings ESP of +1.39% and a Zacks Rank #3 (Hold).
Dean Foods Company
) Earnings ESP stands at +3.85% and it carries a Zacks Rank #3
) with an Earnings ESP of +9.09% holds a Zacks Rank #3
CHURCH & DWIGHT (CHD): Free Stock Analysis
CLOROX CO (CLX): Free Stock Analysis Report
DEAN FOODS CO (DF): Free Stock Analysis
ZUMIEZ INC (ZUMZ): Free Stock Analysis Report
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