NEW YORK (TheStreet) -- Shares of Clarcor Inc. (CLC - Get Report) are up 6.62% to $62.69 after it reported second quarter adjusted earnings per share of 76 cents excluding items, 14 cents better than the Thompson Reuters consensus estimate of of 62 cents.
Revenue for the quarter was $386.6 million versus the consensus estimate of $364.3 million.
The maker of filtration products also projected 2014 EPS in the range of $2.85-$2.95 versus the average analyst estimate of $2.73.
Separately, TheStreet Ratings team rates CLARCOR INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CLARCOR INC (CLC) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 22.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CLC's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CLC has a quick ratio of 1.65, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has significantly increased by 186.10% to $18.45 million when compared to the same quarter last year. In addition, CLARCOR INC has also vastly surpassed the industry average cash flow growth rate of -4.11%.
- 35.79% is the gross profit margin for CLARCOR INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.77% trails the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the Machinery industry average, but is less than that of the S&P 500. The net income increased by 3.7% when compared to the same quarter one year prior, going from $23.46 million to $24.32 million.
- You can view the full analysis from the report here: CLC Ratings Report