Consumer products giant Clorox (NYSE:CLX) will be announcing earnings results tomorrow after market hours. Here’s what you need to know.
Clorox beat analysts’ revenue expectations by 7.5% last quarter, reporting revenues of $1.76 billion, up 27.1% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ organic revenue estimates.
Is Clorox a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Clorox’s revenue to decline 17.6% year on year to $1.64 billion, a reversal from the 16% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.40 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Clorox has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Clorox’s peers in the household products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Church & Dwight delivered year-on-year revenue growth of 3.5%, beating analysts’ expectations by 1.1%, and Procter & Gamble reported revenues up 2.1%, topping estimates by 1.3%. Procter & Gamble traded up 2.8% following the results.
Read our full analysis of Church & Dwight’s results here and Procter & Gamble’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed’s rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the household products stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.1% on average over the last month. Clorox’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $164.09 (compared to the current share price of $158.36).
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