Clorox (NYSE:CLX) Issues Quarterly Earnings Results

Clorox (NYSE:CLX) issued its quarterly earnings data on Monday. The company reported $1.66 earnings per share for the quarter, topping the consensus estimate of $1.64 by $0.02, FiscalAI reports. Clorox had a return on equity of 443.64% and a net margin of 11.18%.The company had revenue of $1.95 billion for the quarter, compared to analysts’ expectations of $1.91 billion. During the same period in the previous year, the firm posted $2.87 earnings per share. The firm’s revenue for the quarter was down 2.0% on a year-over-year basis. Clorox updated its FY 2027 guidance to 5.700-6.000 EPS.

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

• Clorox expects fiscal 2027 organic sales to be flat to slightly positive, with muted category growth and continued value-seeking behavior weighing on demand. Management expects a slower first quarter, largely due to Kingsford grilling-season timing, followed by improvement through the year.
• Fiscal 2027 inflation is expected to exceed $200 million, more than double Clorox’s historical range, with pressure from commodities, energy, freight, logistics and suppliers concentrated in the first half. The company expects only partial gross-margin recovery for the full year, although margins should strengthen in the back half.
• Market-share trends improved sequentially throughout fiscal 2026, with strength in home care, professional and international businesses and turnarounds in Glad and Hidden Valley Ranch. Management expects further share gains in fiscal 2027, while continuing targeted investments in underperforming areas such as Fresh Step litter.
• The GOJO acquisition and Purell brand integration are progressing ahead of plan in some areas, with the business performing above targets and expected to be accretive to adjusted EPS in fiscal 2027. Clorox expects GOJO to deliver mid-single-digit growth initially, potentially accelerating to mid- to high-single digits as revenue synergies develop.
• With the ERP implementation complete, Clorox expects productivity benefits from better supply-chain planning, automation, lower inventory and expanded global business services to emerge later in fiscal 2027 and more fully in fiscal 2028. Management also expects free cash flow to remain within its 11%-13% of sales target and reiterated its commitment to the dividend.

Clorox Stock Up 2.9%

NYSE:CLX opened at $98.25 on Tuesday. Clorox has a twelve month low of $84.70 and a twelve month high of $128.90. The company has a market cap of $11.88 billion, a price-to-earnings ratio of 15.95 and a beta of 0.54. The stock has a fifty day simple moving average of $95.57 and a 200-day simple moving average of $103.57. The company has a current ratio of 0.84, a quick ratio of 0.65 and a debt-to-equity ratio of 27.03.

Clorox Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Wednesday, August 12th will be paid a $1.25 dividend. The ex-dividend date is Wednesday, August 12th. This is a positive change from Clorox’s previous quarterly dividend of $1.24. This represents a $5.00 dividend on an annualized basis and a yield of 5.1%. Clorox’s payout ratio is 80.52%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. EFG International AG purchased a new position in Clorox during the fourth quarter valued at approximately $108,000. Kovack Advisors Inc. purchased a new stake in Clorox during the fourth quarter worth $201,000. Triumph Capital Management lifted its holdings in Clorox by 295.7% during the fourth quarter. Triumph Capital Management now owns 645 shares of the company’s stock worth $65,000 after buying an additional 482 shares during the period. Caitong International Asset Management Co. Ltd boosted its position in Clorox by 792.9% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 500 shares of the company’s stock valued at $62,000 after acquiring an additional 444 shares in the last quarter. Finally, Sittner & Nelson LLC boosted its position in Clorox by 44.9% during the 3rd quarter. Sittner & Nelson LLC now owns 971 shares of the company’s stock valued at $120,000 after acquiring an additional 301 shares in the last quarter. Hedge funds and other institutional investors own 78.53% of the company’s stock.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on CLX shares. BNP Paribas Exane dropped their target price on Clorox from $97.00 to $95.00 and set a “neutral” rating for the company in a report on Monday, July 20th. Weiss Ratings restated a “hold (c-)” rating on shares of Clorox in a report on Friday, July 10th. Evercore restated an “underperform” rating and issued a $98.00 price target on shares of Clorox in a research report on Thursday, July 23rd. The Goldman Sachs Group reaffirmed a “sell” rating and set a $83.00 price objective on shares of Clorox in a research note on Friday, May 1st. Finally, Jefferies Financial Group cut shares of Clorox from a “buy” rating to a “hold” rating and cut their price objective for the company from $125.00 to $98.00 in a research report on Tuesday, July 28th. Twelve investment analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, Clorox currently has an average rating of “Reduce” and an average price target of $101.00.

More Clorox News

Here are the key news stories impacting Clorox this week:

• Positive Sentiment: Quarterly results topped estimates. Clorox reported fiscal fourth-quarter EPS of $1.66, slightly above the $1.64 consensus, while revenue of $1.95 billion exceeded expectations of $1.91 billion. Clorox Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Fiscal 2027 sales outlook is encouraging. Management expects revenue to grow approximately 13% to 14%, or reach $7.6 billion to $7.7 billion, above the roughly $7.5 billion analyst consensus. The company cited improving demand in health and wellness products and international markets. Clorox forecasts upbeat annual sales as demand improves
• Positive Sentiment: Cash-generation target and dividend support investor sentiment. Clorox outlined a fiscal 2027 free-cash-flow target of 11% to 13% of sales and declared a quarterly dividend of $1.25 per share, a modest increase from $1.24. Clorox outlines inflation and free cash flow target

Clorox Company Profile

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.