Clorox (NYSE:CLX) Posts Earnings Results, Beats Estimates By $0.02 EPS

Clorox (NYSE:CLX) announced its earnings results on Monday. The company reported $1.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.64 by $0.02, FiscalAI reports. Clorox had a return on equity of 764.12% and a net margin of 8.74%.The company had revenue of $1.95 billion for the quarter, compared to analyst estimates of $1.91 billion. During the same quarter in the previous year, the company earned $2.87 earnings per share. The firm’s quarterly revenue was down 2.0% compared to the same quarter last year. 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 6.1%

CLX stock opened at $104.26 on Wednesday. The stock has a market cap of $12.61 billion, a P/E ratio of 16.93 and a beta of 0.54. 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 has a twelve month low of $84.70 and a twelve month high of $128.90. The company’s 50 day moving average is $95.73 and its two-hundred day moving average is $103.52.

Clorox Increases Dividend

The business also recently declared 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. This is an increase from Clorox’s previous quarterly dividend of $1.24. This represents a $5.00 annualized dividend and a yield of 4.8%. The ex-dividend date is Wednesday, August 12th. Clorox’s payout ratio is currently 81.17%.

Analyst Ratings Changes

Several research firms have weighed in on CLX. Zacks Research downgraded Clorox from a “hold” rating to a “strong sell” rating in a research report on Tuesday, May 12th. Citigroup increased their target price on shares of Clorox from $97.00 to $100.00 and gave the stock a “neutral” rating in a report on Tuesday. Royal Bank Of Canada cut their price objective on Clorox from $132.00 to $127.00 and set a “sector perform” rating on the stock in a research report on Thursday, April 9th. UBS Group lifted their target price on Clorox from $100.00 to $105.00 and gave the company a “neutral” rating in a report on Tuesday. Finally, Evercore set a $99.00 target price on Clorox in a research note on Tuesday. Twelve research analysts have rated the stock with a Hold rating and five have issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average price target of $102.40.

Institutional Investors Weigh In On Clorox

Several hedge funds and other institutional investors have recently bought and sold shares of CLX. Invesco Ltd. lifted its position in Clorox by 22.1% in the fourth quarter. Invesco Ltd. now owns 4,880,341 shares of the company’s stock valued at $492,085,000 after acquiring an additional 884,751 shares during the last quarter. Worldquant Millennium Advisors LLC acquired a new stake in shares of Clorox in the 2nd quarter valued at about $71,856,000. Two Sigma Investments LP increased its position in Clorox by 33.8% during the third quarter. Two Sigma Investments LP now owns 1,740,175 shares of the company’s stock worth $214,564,000 after buying an additional 439,797 shares during the period. Bank of America Corp DE lifted its stake in Clorox by 31.2% in the third 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 during the last quarter. Finally, State Street Corp boosted its holdings in shares of Clorox by 3.5% in the third quarter. State Street Corp now owns 8,434,277 shares of the company’s stock valued at $1,039,946,000 after acquiring an additional 282,794 shares during the period. 78.53% of the stock is currently owned by institutional investors and hedge funds.

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.