- Clorox’s 2026 adjusted earnings per share (EPS) forecast is set between $5.95 and $6.30, which falls short of the estimated $6.44.
- The regular EPS forecast ranges from $5.60 to $5.95, missing the estimate of $6.29.
- The company anticipates a decrease in net sales by 6% to 10% and a drop in organic sales by 5% to 9% for 2026.
- In Q4, Clorox reported adjusted EPS of $2.87, surpassing the estimate of $2.18.
- Q4 net sales hit $1.99 billion, marking a 4.5% increase year-over-year, and exceeding the estimated $1.93 billion.
- Household net sales grew 7% year-over-year to $639 million, outperforming the $611.7 million estimate.
- Lifestyle net sales saw a 3.4% increase year-over-year, totaling $339 million, slightly below the $344.4 million estimate.
- Health and wellness net sales surged 14% year-over-year to $741 million, beating the $691.8 million estimate.
- International net sales decreased by 0.7% year-over-year to $269 million, missing the $273.5 million estimate.
- Organic sales rose by 8%, topping the estimate of a 5.1% increase.
- The gross margin improved to 46.5%, higher than the estimated 44.2%.
- During the fourth quarter, retailers advanced their orders to manage inventory ahead of Clorox’s ERP system transition in the US, adding approximately 3.5 to 4 sales points and about 85 to 95 cents to EPS for fiscal 2025.
- This advance inventory could lead retailers to reduce orders during Clorox’s ERP transition, reducing sales and impacting fiscal 2026’s figures.
- The cut in orders is projected to lower fiscal 2026 EPS by about 85 to 95 cents.
- This inventory adjustment may result in a year-over-year reduction of approximately 29% to 32% in fiscal 2026 diluted EPS and about 22% to 25% in adjusted EPS, against the fiscal 2025 benchmarks.
Clorox Company on Smartkarma
Analyst coverage of Clorox Company on Smartkarma by Baptista Research has shown a bullish sentiment towards the company’s strategic expansions and growth prospects. In the report titled “The Clorox Company: Strategic Expansion in Key Channels To Support Revenue Stability & Future Growth!”, the company’s resilience in a challenging consumer environment was highlighted. Despite increased competition and macroeconomic uncertainties, Clorox demonstrated strong operational fundamentals, maintaining market share and achieving gross margin expansion for the tenth consecutive quarter.
Another report by Baptista Research, “Clorox Company: Executing Professional Channel Expansion To Catalyze Its Growth!”, discussed insights from the company’s earnings call for the second quarter of fiscal year 2025. The analysis focused on Clorox’s financial performance, strategic plans, and market outlook, emphasizing the CFO transition with Luc Bellet stepping into the role. This transition underscores Clorox’s commitment to internal leadership continuity, reflecting a positive outlook on the company’s growth trajectory.
A look at Clorox Company Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Clorox Company displays a positive long-term outlook. With a strong Dividend score of 4, investors can expect stable returns through dividends. The Growth score of 4 indicates potential for future expansion and revenue growth. In terms of Resilience, Clorox scores a 3, suggesting a moderate ability to withstand economic challenges. The Momentum score of 3 implies a steady performance trend in the market. Although the Value score is rated at 2, indicating some room for improvement in terms of undervaluation, Clorox Company‘s overall outlook remains promising.
The Clorox Company, known for producing essential household products, holds a competitive position in the non-durable consumer goods market. Specializing in a range of products from cleaning items to automotive care, the company caters to a wide consumer base. Operating both domestically and internationally, Clorox has established a strong presence in various retail channels. With favorable scores in Dividend, Growth, Resilience, and Momentum, Clorox Company indicates a solid foundation for future growth and stability in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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