- Clorox has raised its full-year adjusted EPS forecast to a range of $6.95 to $7.35 from the previous $6.65 to $6.90.
- The company anticipates an unadjusted EPS between $5.52 and $5.92, up from a prior range of $5.17 to $5.42.
- Clorox expects net sales growth of between -1% to +2%, with organic sales increasing by 4% to 7%.
- In the second quarter, Clorox reported an adjusted EPS of $1.55, surpassing the estimate of $1.40 but down from $2.16 year-over-year.
- Net sales for the second quarter were $1.69 billion, a 15% decline year-over-year, yet higher than the estimated $1.63 billion.
- Household net sales amounted to $446 million for the quarter, an 11% drop from the previous year and slightly below the estimate of $449.7 million.
- The Lifestyle division recorded net sales of $338 million, a 16% decrease year-over-year, exceeding the estimate of $316.9 million.
- The Health and Wellness segment saw net sales of $628 million, down 13% year-over-year but above the forecast of $594.4 million.
- International net sales were $274 million, a 12% decline compared to the previous year, yet surpassing the estimate of $254.2 million.
- Organic sales decreased by 9%, which was better than the anticipated 12.6% drop.
- The gross margin increased to 43.8% from 43.5% year-over-year, beating the estimate of 42.9%.
- The company’s unadjusted EPS was $1.54, up significantly from 75 cents the prior year.
- Clorox plans to end its Glad bags and wraps joint venture with P&G on January 31, 2026, and will purchase P&G’s 20% interest in the venture.
- Following the termination, Clorox expects to retain exclusive intellectual property licenses from P&G for certain products on a royalty-free basis.
- Clorox will maintain its licensing agreement with P&G for the Febreze and Gain trademarks.
- CEO Linda Rendle stated that the company’s transformation is progressing notably with its Enterprise Resource Planning transition in the U.S., influencing the updated outlook.
Clorox Company on Smartkarma
Analyst coverage on Clorox Company by Baptista Research on Smartkarma highlights the company’s focus on high-margin products as a key growth strategy. In a research report titled “The Clorox Company: Its Enhanced Focus On High Margin Products As A Vital Tool For Growth! – Major Drivers,” Linda Rendle, the CEO, emphasized the company’s recovery from a cyber attack in August 2023, which had impacted supply and distribution. Clorox showcased a strong comeback in the first quarter of fiscal year 2025, regaining and expanding market share across various categories through strategic investments in marketing and innovation.
Additionally, Baptista Research‘s report titled “The Clorox Company: A Dive Into Its Market Positioning” delves into the company’s fiscal year 2024 fourth-quarter earnings, highlighting a period of recovery and strategic realignment. Despite operational challenges, including a significant cyberattack, Clorox ended the fiscal year on a stable note with flat organic sales year-over-year. The research aims to evaluate factors influencing the company’s stock price in the future, utilizing a Discounted Cash Flow (DCF) methodology for an independent valuation of Clorox Company.
A look at Clorox Company Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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 for Clorox Company, the outlook for the company appears to be moderately positive for the long term. With a Dividend score of 4, Clorox Company shows strength in providing regular dividends to its investors, making it an attractive choice for income-oriented investors. Additionally, a Growth score of 3 indicates potential for moderate expansion and development in the future. Although Value and Resilience scores are lower at 2, suggesting some undervaluation and vulnerability to economic disruptions, the company’s Momentum score of 3 implies a decent level of market interest and support.
The Clorox Company, known for producing and selling various non-durable consumer products worldwide, including household cleaning items, bleach products, charcoal, cat litter, automotive care products, dressings, and trash bags, appears to have a stable market presence. While the company may face some challenges in terms of value and resilience, its strong dividend payouts and growth potential could attract investors looking for steady returns and moderate expansion opportunities in the household products industry.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
