The Clorox Company (CLX), valued at $16.6 billion by market cap, operates in the consumer goods sector, producing and marketing a diverse range of products across Health and Wellness, Household, Lifestyle, and International segments. The California-based company is expected to unveil its fiscal Q4 earnings results after the market closes on Thursday, Aug. 1.
Prior to the event, analysts anticipate the consumer products giant to report a profit of $1.54 per share, a 7.8% decline from $1.67 per share in the same quarter last year. Nevertheless, the company has consistently surpassed Wall Street's earnings projections over the last four quarters. In Q3, CLX reported an EPS of $1.71, exceeding the consensus estimate by a notable 28.6% margin.
For fiscal 2024, analysts expect CLX to report EPS of $5.91, up 16.1% from $5.09 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to surge by an 8.3% margin, reaching $6.40.
On a YTD basis, CLX's shares have dropped 6.5%, significantly underperforming the S&P 500 Index's ($SPX) 13.2% gain and the S&P 500 Cons Staples Sector SPDR's (XLP) 7.9% increase over the same period.
In early February, Clorox's stock surged 5.6% after its Q2 results showed a 16% year over year increase in net sales and more than doubled EPS, alongside a raised full-year outlook due to effective inventory rebuilding post-cyberattack.
However, the stock fell 5.6% on May 1 following its lower-than-expected Q3 revenue due to lower sales volume from cyberattack-related distribution disruptions and unfavorable foreign exchange rates. Despite exceeding EPS estimates as a result of improved pricing and cost savings, Clorox lowered its full-year organic revenue growth outlook, contributing to the stock's decline.
Analysts' consensus rating on Clorox stock is cautious, with a "Hold" rating overall. Out of 19 analysts covering the stock, opinions include 14 "Holds" and five "Strong Sells." Despite the overall neutral rating, this consensus is slightly less bullish than three months ago, with four “Strong Sell” ratings on the stock.
The average analyst price target for CLX is $143.39, suggesting a potential upside of 7.5% from current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
