Clorox (NYSE:CLX) Announces Earnings Results, Beats Estimates By $0.48 EPS

Clorox (NYSE:CLX) issued its quarterly earnings results on Monday. The company reported $1.55 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.07 by $0.48, FiscalAI reports. Clorox had a return on equity of 522.23% and a net margin of 8.74%.

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

• First-quarter performance exceeded expectations, with improving organic sales trends, consumption, and aggregate market share. Home care gained more than half a share point, while Hidden Valley gained nearly two points and Kingsford posted strong Labor Day growth.
• The company raised its fiscal 2027 input-cost inflation estimate to approximately $240 million, about $40 million above its initial outlook, driven by resin, commodities, transportation, and broader supply-chain costs. Margin pressure is expected to be greatest in the first half.
• Full-year organic sales growth is projected at 3.5%–4.5%, including roughly 3.5 points from lapping the ERP transition; excluding that benefit, growth is expected to be flat to up 1%. Management anticipates slightly weaker results in the first half and modest improvement in the back half, supported by innovation and execution.
• Management expects productivity and cost savings to provide most of the margin recovery, supplemented by targeted pricing and revenue-growth-management actions. Clorox has line of sight to at least $50 million of GOJO cost synergies, with some benefits arriving earlier than initially expected.
• CEO Linda Rendle will step down on January 5, with Fabian Garcia appointed as her successor. Management expects a smooth transition, with Garcia bringing consumer-products experience in brand building, innovation, portfolio management, and disciplined growth.

Clorox Price Performance

Shares of NYSE CLX traded up $2.04 during mid-day trading on Monday, reaching $90.04. The company’s stock had a trading volume of 3,641,536 shares, compared to its average volume of 2,650,610. The stock has a 50-day moving average of $88.27 and a two-hundred day moving average of $99.92. The company has a debt-to-equity ratio of 15.80, a quick ratio of 0.38 and a current ratio of 0.66. The stock has a market capitalization of $10.89 billion, a P/E ratio of 18.68, a P/E/G ratio of 2.94 and a beta of 0.59. Clorox has a 1-year low of $79.12 and a 1-year high of $128.90.

Clorox Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Stockholders of record on Wednesday, October 28th will be given a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a dividend yield of 5.6%. The ex-dividend date is Wednesday, October 28th. Clorox’s dividend payout ratio is 103.73%.

Clorox News Roundup

Here are the key news stories impacting Clorox this week:

• Positive Sentiment: Clorox reported fiscal Q1 2027 adjusted earnings per share of $1.55, well above the $1.07 consensus estimate. Revenue also exceeded expectations, supporting investor confidence in the company’s earnings recovery. Clorox reports Q1 adjusted EPS $1.55, consensus $1.07
• Positive Sentiment: The company said first-quarter sales and earnings grew, while its quarterly results showed better-than-expected operating performance. Clorox Reports Strong Fiscal First-Quarter Sales and Earnings Growth
• Positive Sentiment: Evercore ISI upgraded CLX from “underperform” to “in-line” and assigned a $99 price target, implying roughly 10% upside from the referenced share price. Evercore ISI Group upgrades Clorox
• Positive Sentiment: Clorox’s incoming CEO is viewed as having meaningful turnaround experience, potentially improving execution as the company works to restore earnings growth. New CEO at Clorox brings strong turnaround experience
• Neutral Sentiment: Management maintained its full-year adjusted EPS outlook of $5.70 to $6.00 but now expects results toward the low end of that range, reflecting a cautious outlook despite the quarterly beat. Clorox Posts Higher Revenue, Profit; Trims Outlook on Higher Costs
• Negative Sentiment: Higher input and operating costs are creating a challenging backdrop and could pressure margins, while analysts and investors are also focusing on Clorox’s elevated debt burden during the turnaround. Clorox CEO appointment puts earnings recovery and debt in focus

Analyst Ratings Changes

A number of research firms have recently commented on CLX. BNP Paribas Exane cut their price objective on Clorox from $97.00 to $95.00 and set a “neutral” rating for the company in a research report on Monday, July 20th. TD Cowen decreased their target price on Clorox from $85.00 to $80.00 and set a “hold” rating on the stock in a research report on Tuesday, October 13th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Clorox in a research report on Tuesday, October 6th. Zacks Research cut shares of Clorox from a “hold” rating to a “strong sell” rating in a research note on Thursday. Finally, Wall Street Zen cut shares of Clorox from a “hold” rating to a “sell” rating in a research note on Saturday, October 3rd. Twelve investment analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Reduce” and an average price target of $93.57.

About Clorox

The Clorox Company, founded in 1913 and headquartered in Oakland, California, is a consumer and professional products company. It began with household bleach and has expanded into a portfolio of brands serving cleaning, household, personal care, food, and professional markets.

Its brands include Clorox disinfecting and cleaning products, Pine-Sol cleaners, Liquid-Plumr drain care, Kingsford charcoal, Fresh Step and Scoop Away cat litter, Hidden Valley dressings and dips, Brita water filtration products, and Burt’s Bees personal care items.