Brokers Issue Forecasts for Clorox's Q3 Earnings (NYSE:CLX)

Key Points

• Zacks Research lowered Clorox’s Q3 fiscal 2027 EPS forecast to $1.56 from $1.62 and projects $1.77 EPS for Q4; full-year consensus stands at $5.66 per share.
• Analyst sentiment remains cautious, with 12 Hold ratings and four Sell ratings producing a consensus “Reduce” rating and an average price target of $93.57. Several firms recently cut their targets, including Morgan Stanley, Barclays, and Wells Fargo.
• Clorox’s shares opened at $86.78, near the lower end of their 52-week range, while the company’s $1.25 quarterly dividend implies a 5.8% yield; however, the payout ratio exceeds 100% and recent sales and earnings have declined.

The Clorox Company (NYSE:CLX - Free Report) - Analysts at Zacks Research reduced their Q3 2027 earnings estimates for shares of Clorox in a research note issued to investors on Friday, October 23rd. Zacks Research analyst Team now forecasts that the company will post earnings per share of $1.56 for the quarter, down from their previous estimate of $1.62. Zacks Research has a "Hold" rating on the stock. The consensus estimate for Clorox's current full-year earnings is $5.66 per share. Zacks Research also issued estimates for Clorox's Q4 2027 earnings at $1.77 EPS.

Other analysts have also issued reports about the company. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $95.00 price objective on shares of Clorox in a research note on Monday, October 19th. Morgan Stanley cut their target price on Clorox from $97.00 to $87.00 and set an "equal weight" rating for the company in a research note on Thursday, October 15th. Barclays reduced their target price on Clorox from $84.00 to $80.00 and set an "underweight" rating for the company in a report on Friday, October 16th. Wells Fargo & Company decreased their price target on Clorox from $90.00 to $85.00 and set an "equal weight" rating on the stock in a research report on Monday, October 5th. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Clorox in a report on Tuesday, October 6th. Twelve equities 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.com, the company presently has a consensus rating of "Reduce" and an average target price of $93.57.

Clorox Price Performance

Clorox stock opened at $86.78 on Tuesday. Clorox has a one year low of $79.12 and a one year high of $128.90. The business has a fifty day moving average price of $90.49 and a 200-day moving average price of $100.42. The company has a debt-to-equity ratio of 15.80, a current ratio of 0.66 and a quick ratio of 0.38. The firm has a market capitalization of $10.50 billion, a P/E ratio of 18.00, a PEG ratio of 2.89 and a beta of 0.59.

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

Clorox Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Wednesday, October 28th will be paid a $1.25 dividend. This represents a $5.00 dividend on an annualized basis and a yield of 5.8%. The ex-dividend date is Wednesday, October 28th. Clorox's dividend payout ratio is currently 103.73%.

Institutional Trading of Clorox

Several institutional investors and hedge funds have recently modified their holdings of CLX. NewEdge Advisors LLC lifted its stake in Clorox by 11.8% during the second quarter. NewEdge Advisors LLC now owns 75,135 shares of the company's stock worth $7,171,000 after purchasing an additional 7,956 shares during the last quarter. Public Employees Retirement System of Ohio bought a new position in shares of Clorox in the second quarter worth approximately $3,277,000. Corient Private Wealth LP bought a new stake in Clorox in the 2nd quarter worth $6,621,000. Bank of America Corp DE grew its stake in shares of Clorox by 6.1% in the first quarter. Bank of America Corp DE now owns 1,405,774 shares of the company's stock worth $145,680,000 after purchasing an additional 80,618 shares during the last quarter. Finally, MAC Alpha Capital Management LP increased its stake in shares of Clorox by 88.7% during the second quarter. MAC Alpha Capital Management LP now owns 263,789 shares of the company's stock valued at $25,178,000 after buying an additional 124,019 shares during the period. Hedge funds and other institutional investors own 78.53% of the company's stock.

Key Stories Impacting Clorox

Here are the key news stories impacting Clorox this week:

• Neutral Sentiment: Clorox expects modest organic sales growth in fiscal 2027, and its nearly 6% dividend yield may attract income-focused investors. However, the company is also absorbing integration costs from a recent acquisition, while debt has doubled to approximately $5 billion. Should You Forget Clorox Stock Near a 52-Week Low?
• Negative Sentiment: Zacks Research cut its fiscal third-quarter 2027 EPS forecast to $1.56 from $1.62 and its fourth-quarter forecast to $1.77 from $1.82. The firm maintains a “Hold” rating, adding pressure to expectations ahead of Clorox’s results. Clorox Stock Sees Q1 Earnings Estimate Cut at Zacks Research
• Negative Sentiment: UBS expects fiscal first-quarter organic sales growth to remain pressured and costs to weigh on earnings, suggesting limited near-term operating momentum. Clorox's Fiscal Q1 Organic Sales Growth to Stay Pressured, With Costs Impacting Earnings, UBS Says
• Negative Sentiment: Recent coverage points to a 5% decline in net sales, with profits falling even faster. Macroeconomic pressure, acquisition-related expenses and elevated leverage are clouding the investment case. Macroeconomic Headwinds are Hitting Clorox From All Sides
• Negative Sentiment: Zacks also says Clorox lacks the favorable combination of factors that typically supports an earnings beat, increasing concern around the upcoming report. Full-year consensus currently stands at $5.66 EPS. Clorox Earnings Expected to Grow: Should You Buy?

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.

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