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

Key Points

• Clorox beat quarterly earnings expectations, reporting adjusted EPS of $1.55 versus the $1.07 consensus, alongside improving organic sales, consumption and market share.
• Management maintained its full-year adjusted EPS outlook of $5.70–$6.00 but expects results near the low end, as input-cost inflation rose to approximately $240 million and is expected to pressure margins, particularly in the first half.
• CEO Linda Rendle is set to step down in January and will be succeeded by Fabian Garcia, while Clorox also reaffirmed its $1.25 quarterly dividend, equivalent to a 5.6% annualized yield.

Clorox (NYSE:CLX - Get Free Report) posted its quarterly earnings results on Monday. The company reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate 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 Stock Performance

Shares of CLX stock traded up $2.04 during trading on Monday, reaching $90.04. 3,641,536 shares of the company's stock 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 PE ratio of 18.68, a PEG ratio of 2.94 and a beta of 0.59. Clorox has a twelve month low of $79.12 and a twelve month high of $128.90. The firm's fifty day moving average price is $88.61 and its 200-day moving average price is $100.01.

Clorox Dividend Announcement

The firm also recently disclosed 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 of this dividend is Wednesday, October 28th. Clorox's dividend payout ratio (DPR) is presently 103.73%.

More Clorox News

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 research firms recently weighed in on CLX. Wall Street Zen lowered shares of Clorox from a "hold" rating to a "sell" rating in a research note on Saturday, October 3rd. Jefferies Financial Group downgraded shares of Clorox from a "buy" rating to a "hold" rating and lowered their target price for the company from $125.00 to $98.00 in a research note on Tuesday, July 28th. Citigroup cut their target price on shares of Clorox from $97.00 to $90.00 and set a "neutral" rating on the stock in a report on Wednesday, October 14th. Barclays reduced their price target on shares of Clorox from $84.00 to $80.00 and set an "underweight" rating on the stock in a research report on Friday, October 16th. Finally, JPMorgan Chase & Co. decreased their price target on shares of Clorox from $95.00 to $83.00 and set an "underweight" rating for the company in a report on Monday, October 19th. Twelve investment analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average target price of $93.57.

Clorox Company Profile

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.

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