Analysts expect Clorox to report higher fiscal 2nd-quarter profit

Earnings Preview: Clorox Co.

CINCINNATI — Consumer products maker Clorox Co., whose products include bleach, Britta water filters and Glad trash bags, reports its fiscal second-quarter results before the stock market opens Thursday.

WHAT TO WATCH FOR: Whether Clorox plans price increases to cover the rising cost of commodities such as oil.

Competition from cheaper store brands can make it hard for Clorox to raise its prices. The company has tried to offset that pressure by increasing its marketing and developing new products.

In the first quarter, higher sales of disinfectants boosted Clorox’s results, but fears of the H1N1 virus’s spread have faded and that might not carry through to the second quarter.

WHY IT MATTERS: Many consumers have been trading down to cheaper products to save money amid layoffs and tighter credit. Consumer spending will be critical to a strong rebound from the worst economic downturn since the Great Depression.

Strong sales at Clorox could show consumers are willing and able to spend more again.

WHAT’S EXPECTED: Analysts polled by Thomson Reuters, on average, predict a profit of 76 cents per share on revenue of $1.25 billion. Analysts typically exclude one-time items.

LAST YEAR’S QUARTER: Clorox reported a profit of 62 cents per share on revenue of $1.22 billion. The quarter did not contain any special items.