Clorox Q1 results beat estimates; expects FY adj EPS near low end of guidance range
Overview
US consumer products maker's fiscal Q1 revenue rose 33%, beating analyst expectations
Adjusted EPS for fiscal Q1 rose 82% and beat consensus, driven by higher sales and cost savings
Company maintains full-year sales and adjusted EPS outlook, but sees results near low end of EPS range
Outlook
Clorox maintains FY 2027 net sales growth outlook of 13% to 14%
Company expects FY 2027 adjusted EPS between $5.70 and $6.00, near low end of range
Gross margin for FY 2027 now expected at about 41.5%, reflecting higher inflationary pressures
Result Drivers
GOJO ACQUISITION - Co said GOJO acquisition contributed about 15 points to net sales growth and 39 points to Health and Wellness segment growth
ERP TRANSITION LAP - Co said organic sales and adjusted EPS benefited from lapping prior-year ERP transition-related inventory drawdown
COST SAVINGS - Co delivered one of its strongest quarters of cost savings, helping offset higher commodity, manufacturing and logistics costs
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $1.91 bln | $1.88 bln (12 Analysts) |
Q1 Adjusted EPS | Beat | $1.55 | $1.06 (15 Analysts) |
Q1 EPS | $1.39 | ||
Q1 Gross Margin | 40.40% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 16 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the household products peer group is "buy."
Wall Street's median 12-month price target for The Clorox Company is $91.00, about 3.4% above its October 30 closing price of $88.00
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)