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

Key Points

• Clorox beat quarterly expectations, reporting earnings of $1.66 per share versus the $1.64 consensus estimate. Revenue totaled $1.95 billion, ahead of analyst expectations of $1.91 billion.
• The stock rose 2.9% to $98.25 following the results. Clorox also increased its quarterly dividend to $1.25 per share, equivalent to a 5.1% annualized yield.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating, with 12 Hold ratings and five Sell ratings and an average price target of $101.

Clorox (NYSE:CLX - Get Free Report) released its earnings results on Monday. The company reported $1.66 EPS for the quarter, beating the consensus estimate of $1.64 by $0.02, FiscalAI reports. Clorox had a return on equity of 443.64% and a net margin of 11.18%.The firm had revenue of $1.95 billion during the quarter, compared to analyst estimates of $1.91 billion.

Clorox Stock Up 2.9%

CLX traded up $2.72 during trading hours on Monday, reaching $98.25. 3,840,658 shares of the stock traded hands, compared to its average volume of 2,530,561. Clorox has a fifty-two week low of $84.70 and a fifty-two week high of $128.90. The company has a market cap of $11.88 billion, a price-to-earnings ratio of 15.95 and a beta of 0.54. The company has a debt-to-equity ratio of 27.03, a current ratio of 0.84 and a quick ratio of 0.65. The firm's fifty day simple moving average is $95.51 and its two-hundred day simple moving average is $103.64.

Clorox Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Wednesday, August 12th will be issued a dividend of $1.25 per share. This represents a $5.00 dividend on an annualized basis and a yield of 5.1%. The ex-dividend date of this dividend is Wednesday, August 12th. This is a positive change from Clorox's previous quarterly dividend of $1.24. Clorox's dividend payout ratio (DPR) is 80.52%.

Insiders Place Their Bets

In other Clorox news, Director Pierre R. Breber bought 5,000 shares of the stock in a transaction dated Tuesday, May 5th. The stock was bought at an average cost of $85.82 per share, for a total transaction of $429,100.00. Following the completion of the purchase, the director directly owned 18,000 shares of the company's stock, valued at approximately $1,544,760. The trade was a 38.46% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 0.63% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. State Street Corp raised its position in shares of Clorox by 3.5% in the 3rd quarter. State Street Corp now owns 8,434,277 shares of the company's stock valued at $1,039,946,000 after purchasing an additional 282,794 shares in the last quarter. Invesco Ltd. increased its stake in shares of Clorox by 22.1% in the fourth quarter. Invesco Ltd. now owns 4,880,341 shares of the company's stock worth $492,085,000 after buying an additional 884,751 shares during the last quarter. Two Sigma Investments LP raised its holdings in Clorox by 33.8% in the third quarter. Two Sigma Investments LP now owns 1,740,175 shares of the company's stock valued at $214,564,000 after acquiring an additional 439,797 shares in the last quarter. Northern Trust Corp boosted its stake in Clorox by 4.8% during the 3rd quarter. Northern Trust Corp now owns 1,539,006 shares of the company's stock valued at $189,759,000 after acquiring an additional 70,783 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its holdings in Clorox by 18.2% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,476,933 shares of the company's stock worth $182,106,000 after acquiring an additional 227,806 shares in the last quarter. Hedge funds and other institutional investors own 78.53% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on CLX shares. JPMorgan Chase & Co. lowered their target price on shares of Clorox from $95.00 to $92.00 and set an "underweight" rating for the company in a report on Thursday, July 16th. Weiss Ratings reissued a "hold (c-)" rating on shares of Clorox in a research note on Friday, July 10th. Citigroup cut their target price on Clorox from $110.00 to $97.00 and set a "neutral" rating on the stock in a research report on Friday, May 1st. Jefferies Financial Group lowered Clorox from a "buy" rating to a "hold" rating and dropped their price target for the stock from $125.00 to $98.00 in a research note on Tuesday, July 28th. Finally, Morgan Stanley decreased their target price on Clorox from $110.00 to $97.00 and set an "equal weight" rating for the company in a report on Friday, May 1st. Twelve investment analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the company. According to MarketBeat.com, Clorox currently has a consensus rating of "Reduce" and an average price target of $101.00.

About Clorox

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.

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