Clorox (NYSE:CLX) Releases Earnings Results, Misses Estimates By $0.04 EPS

Clorox (NYSE:CLX) posted its quarterly earnings data on Tuesday. The company reported $1.39 EPS for the quarter, missing analysts’ consensus estimates of $1.43 by ($0.04), FiscalAI reports. Clorox had a net margin of 11.68% and a return on equity of 358.39%. The firm had revenue of $1.67 billion during the quarter, compared to the consensus estimate of $1.64 billion. During the same period in the prior year, the company posted $1.55 earnings per share. The company’s revenue for the quarter was down .8% compared to the same quarter last year.

Here are the key takeaways from Clorox’s conference call:

• We completed the phased rollout of our ERP in January — a ~1-point shipment prebuild favorability will reverse in Q3, Q3 carries a final ~0.08 EPS one?time adjustment, and management expects gross margin to be flat in Q3 and expand meaningfully in Q4 as ERP?related disruption abates and cost?savings ramp.
• The company is heavily investing in back?half innovation and demand creation — highlighted launches include a proprietary Pure Allergen cleaning platform, Glad LeakGuard/ForceFlex extensions, a multi?year litter relaunch, and new Hidden Valley SKUs — with major shelf resets in late Q3/early Q4 intended to drive share and category growth.
• The planned acquisition of GOJO/Purell is positioned as a strategic and accretive move to expand Clorox’s health & hygiene leadership, leveraging GOJO’s team and capabilities alongside Clorox’s scale and margin management to drive long?term growth.
• Household categories remain pressured — management reported negative pricing and volumes in household, share declines in trash and litter, and elevated promotional activity (notably Scoop Away Costco promos and competitive promotions in cat litter/trash) that the company is countering with targeted promotions, price?pack architecture changes and innovation.

Clorox Stock Up 1.6%

CLX traded up $1.82 during midday trading on Tuesday, reaching $115.11. 2,719,278 shares of the company were exchanged, compared to its average volume of 2,315,521. The company has a market cap of $14.04 billion, a price-to-earnings ratio of 18.07, a price-to-earnings-growth ratio of 0.56 and a beta of 0.59. Clorox has a one year low of $96.66 and a one year high of $159.04. The company’s fifty day moving average price is $105.02 and its 200 day moving average price is $114.06. The company has a debt-to-equity ratio of 18.01, a quick ratio of 0.50 and a current ratio of 0.76.

Clorox Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, February 13th. Shareholders of record on Wednesday, January 28th will be paid a dividend of $1.24 per share. The ex-dividend date is Wednesday, January 28th. This represents a $4.96 dividend on an annualized basis and a yield of 4.3%. Clorox’s payout ratio is 77.86%.

Insider Buying and Selling

In related news, Director Pierre R. Breber acquired 4,000 shares of the company’s stock in a transaction on Friday, November 21st. The shares were acquired at an average cost of $104.13 per share, for a total transaction of $416,520.00. Following the purchase, the director owned 13,000 shares in the company, valued at approximately $1,353,690. The trade was a 44.44% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.63% of the company’s stock.

Hedge Funds Weigh In On Clorox

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Invesco Ltd. boosted its holdings in shares of Clorox by 23.1% in the third quarter. Invesco Ltd. now owns 3,995,590 shares of the company’s stock worth $492,656,000 after acquiring an additional 750,415 shares during the period. Worldquant Millennium Advisors LLC bought a new position in Clorox in the 2nd quarter worth about $71,856,000. Two Sigma Investments LP boosted its stake in Clorox by 33.8% in the 3rd quarter. Two Sigma Investments LP now owns 1,740,175 shares of the company’s stock worth $214,564,000 after purchasing an additional 439,797 shares during the period. Bank of America Corp DE grew its holdings in Clorox by 31.2% during the 3rd quarter. Bank of America Corp DE now owns 1,465,446 shares of the company’s stock valued at $180,689,000 after buying an additional 348,292 shares in the last quarter. Finally, State Street Corp increased its position in shares of Clorox by 3.5% during the third quarter. State Street Corp now owns 8,434,277 shares of the company’s stock valued at $1,039,946,000 after buying an additional 282,794 shares during the period. 78.53% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on CLX shares. The Goldman Sachs Group cut their target price on Clorox from $110.00 to $94.00 and set a “sell” rating on the stock in a research report on Wednesday, January 7th. TD Cowen restated a “hold” rating on shares of Clorox in a report on Thursday, January 8th. Deutsche Bank Aktiengesellschaft lifted their price objective on shares of Clorox from $110.00 to $114.00 and gave the company a “hold” rating in a research note on Friday, January 23rd. BNP Paribas Exane reduced their price target on shares of Clorox from $103.00 to $101.00 and set an “underperform” rating for the company in a report on Friday, January 16th. Finally, Morgan Stanley decreased their price target on shares of Clorox from $137.00 to $125.00 and set an “equal weight” rating for the company in a research note on Tuesday, November 4th. One analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and four have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Reduce” and an average target price of $120.33.

About Clorox

The Clorox Company is a leading manufacturer and marketer of consumer and professional products designed to help people care for their homes and live healthy, sustainable lives. Its portfolio spans cleaning and household products, food and beverages, water filtration systems and cat litter, serving both retail and institutional customers. The company’s flagship bleach and disinfecting products are well known in the United States and many international markets, where they help prevent the spread of germs in homes, hospitals, schools and businesses.

Clorox’s diverse brand lineup includes liquid bleach and surface cleaners, eco-friendly cleaning tools, food preservation and preparation items, charcoal grills and briquettes, specialty foods and beverages, pet care products and personal care lines.