Bleach maker Clorox's Q2 revenue beats estimates

Overview

• Consumer goods firm's fiscal Q2 revenue beat analyst expectations despite a 1% decline

• Adjusted EPS for fiscal Q2 missed analyst expectations

Outlook

• Clorox maintains fiscal year 2026 net sales outlook to decrease 6% to 10%

• Company expects fiscal year 2026 adjusted EPS between $5.95 and $6.30

• Clorox anticipates GOJO acquisition to close before fiscal year-end 2026

Result Drivers

• LOWER CONSUMPTION - Net sales decreased 1% due to lower consumption, partially offset by shipments ahead of consumption

• HIGHER COSTS - Gross margin decreased due to higher manufacturing and logistics costs, partially offset by cost savings

• DIGITAL INVESTMENTS - Lower costs related to digital capabilities and productivity enhancements impacted EPS

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 14 "hold" and 4 "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 Clorox Co is $115.00, about 1.5% above its February 2 closing price of $113.29

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPn9h7D65a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.