Equities Analysts Set Expectations for Clorox Q2 Earnings

Key Points

• Zacks Research lowered Clorox’s Q2 2027 EPS estimate to $1.36 from $1.44 and maintained a “Strong Sell” rating. The consensus full-year 2027 estimate is $5.82 per share.
• Analyst sentiment remains cautious, with Clorox carrying an average “Reduce” rating and a consensus price target of $102.40; 12 analysts rate it Hold and five rate it Sell.
• Clorox recently exceeded quarterly earnings and revenue expectations but reported a 2% year-over-year revenue decline. The company raised its quarterly dividend to $1.25 per share, equating to a 4.7% annualized yield, though its payout ratio is above 100%.

The Clorox Company (NYSE:CLX - Free Report) - Investment analysts at Zacks Research dropped their Q2 2027 earnings estimates for Clorox in a research note issued to investors on Monday, August 17th. Zacks Research analyst Team now expects that the company will post earnings of $1.36 per share for the quarter, down from their prior forecast of $1.44. Zacks Research has a "Strong Sell" rating on the stock. The consensus estimate for Clorox's current full-year earnings is $5.82 per share. Zacks Research also issued estimates for Clorox's Q3 2027 earnings at $1.62 EPS, Q4 2027 earnings at $1.82 EPS, FY2027 earnings at $5.82 EPS, Q1 2028 earnings at $1.10 EPS, Q2 2028 earnings at $1.55 EPS, Q3 2028 earnings at $1.77 EPS, Q4 2028 earnings at $1.81 EPS, FY2028 earnings at $6.23 EPS and FY2029 earnings at $6.89 EPS.

Several other research analysts have also recently weighed in on the company. Wall Street Zen cut Clorox from a "hold" rating to a "sell" rating in a research report on Saturday. Citigroup raised their price target on shares of Clorox from $97.00 to $100.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 4th. BNP Paribas Exane cut their price objective on shares of Clorox from $97.00 to $95.00 and set a "neutral" rating for the company in a report on Monday, July 20th. Barclays reaffirmed an "underweight" rating and set a $84.00 target price on shares of Clorox in a report on Tuesday, August 4th. Finally, Weiss Ratings reiterated a "hold (c-)" rating on shares of Clorox in a research note on Friday, July 10th. Twelve equities research analysts have rated the stock with a Hold rating and five have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $102.40.

Clorox Price Performance

Shares of NYSE CLX opened at $106.01 on Tuesday. The firm has a market cap of $12.82 billion, a P/E ratio of 21.99, a price-to-earnings-growth ratio of 3.15 and a beta of 0.54. The business's 50 day moving average is $98.30 and its 200-day moving average is $103.19. The company has a current ratio of 0.66, a quick ratio of 0.38 and a debt-to-equity ratio of 15.80. Clorox has a 1-year low of $84.70 and a 1-year high of $128.90.

Clorox (NYSE:CLX - Get Free Report) last announced its earnings results on Monday, August 3rd. The company reported $1.66 EPS for the quarter, topping the consensus estimate of $1.64 by $0.02. Clorox had a net margin of 8.74% and a return on equity of 522.23%. The business had revenue of $1.95 billion during the quarter, compared to the consensus estimate of $1.91 billion. During the same quarter in the previous year, the firm posted $2.87 EPS. Clorox's revenue was down 2.0% compared to the same quarter last year. Clorox has set its FY 2027 guidance at 5.700-6.000 EPS.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in CLX. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Clorox by 4.0% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,380 shares of the company's stock valued at $1,970,000 after buying an additional 514 shares in the last quarter. Woodline Partners LP lifted its holdings in shares of Clorox by 253.7% in the first quarter. Woodline Partners LP now owns 10,407 shares of the company's stock worth $1,532,000 after acquiring an additional 7,465 shares during the last quarter. Baird Financial Group Inc. boosted its stake in shares of Clorox by 1.7% in the 2nd quarter. Baird Financial Group Inc. now owns 25,032 shares of the company's stock valued at $3,006,000 after purchasing an additional 424 shares in the last quarter. Jump Financial LLC increased its position in Clorox by 173.5% during the 2nd quarter. Jump Financial LLC now owns 12,491 shares of the company's stock worth $1,500,000 after purchasing an additional 7,924 shares in the last quarter. Finally, Bank of Nova Scotia lifted its stake in Clorox by 26.2% in the 2nd quarter. Bank of Nova Scotia now owns 16,141 shares of the company's stock valued at $1,938,000 after purchasing an additional 3,352 shares during the last quarter. 78.53% of the stock is owned by institutional investors.

Clorox Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Wednesday, August 12th will be issued a dividend of $1.25 per share. This is a boost from Clorox's previous quarterly dividend of $1.24. The ex-dividend date of this dividend is Wednesday, August 12th. This represents a $5.00 dividend on an annualized basis and a dividend yield of 4.7%. Clorox's payout ratio is currently 103.73%.

Clorox News Summary

Here are the key news stories impacting Clorox this week:

• Positive Sentiment: Zacks raised its Q3 2027 EPS forecast to $1.62 from $1.57 and its Q4 2027 forecast to $1.82 from $1.71, suggesting stronger projected earnings in the second half of fiscal 2027.
• Positive Sentiment: The firm also increased its Q3 2028 estimate to $1.77 from $1.76 and its Q4 2028 estimate to $1.81 from $1.73. Zacks projects FY2029 EPS of $6.89, above the current-year consensus estimate of $5.82, indicating expected longer-term earnings growth.
• Neutral Sentiment: The revisions leave Zacks’ FY2027 EPS estimate at $5.82 and establish forecasts of $6.23 for FY2028 and $6.89 for FY2029. These figures imply growth over time, but the analyst did not change its overall “Strong Sell” view.
• Negative Sentiment: Zacks cut its Q2 2027 EPS estimate to $1.36 from $1.44, lowering expectations for the near-term earnings outlook.
• Negative Sentiment: The firm reduced its Q1 2028 forecast to $1.10 from $1.28 and Q2 2028 forecast to $1.55 from $1.59, pointing to weaker projected results early in fiscal 2028.
• Negative Sentiment: Full-year forecasts were also trimmed: FY2027 EPS fell to $5.82 from $6.00 and FY2028 EPS declined to $6.23 from $6.36. These cuts outweigh the modest quarterly upgrades and reinforce concerns about Clorox’s earnings momentum.

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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