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

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

Reuters Recommended Reads

• Nov 2 - Estee Lauder beats Q1 adjusted EPS estimates, raises FY outlook

• Nov 2 - Estee Lauder cuts promotions as luxury fragrances help lift outlook

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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.)