Clorox (NYSE:CLX) Issues Earnings Results

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

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 Stock Performance

NYSE CLX traded up $2.04 during trading hours on Monday, reaching $90.04. 3,641,536 shares of the company were exchanged, compared to its average volume of 2,650,610. The company has a quick ratio of 0.38, a current ratio of 0.66 and a debt-to-equity ratio of 15.80. 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. The business’s 50 day simple moving average is $88.61 and its 200-day simple moving average is $100.01. Clorox has a 1 year low of $79.12 and a 1 year high of $128.90.

Clorox Announces Dividend

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 dividend of $1.25 per share. The ex-dividend date of this dividend is Wednesday, October 28th. This represents a $5.00 annualized dividend and a dividend yield of 5.6%. Clorox’s dividend payout ratio (DPR) is currently 103.73%.

Clorox News Summary

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

Several brokerages have recently commented on CLX. Evercore raised shares of Clorox from an “underperform” rating to an “in-line” rating and set a $99.00 price objective for the company in a research report on Monday. TD Cowen decreased their price objective on Clorox from $85.00 to $80.00 and set a “hold” rating for the company in a report on Tuesday, October 13th. Barclays lowered their target price on Clorox from $84.00 to $80.00 and set an “underweight” rating on the stock in a research report on Friday, October 16th. JPMorgan Chase & Co. cut their target price on Clorox from $95.00 to $83.00 and set an “underweight” rating on the stock in a report on Monday, October 19th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Clorox in a research report on Tuesday, October 6th. Twelve research analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, Clorox currently has a consensus rating of “Reduce” and an average target price 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.