- Clorox’s 4Q adjusted EPS is $1.82, surpassing the estimate of $1.55 and last year’s $1.67.
- Reported EPS for 4Q is $1.73.
- Net sales are $1.90 billion, down 5.7% year-over-year, and below the estimate of $1.96 billion.
- Household net sales are $597 million, a decline of 10% year-over-year, missing the estimate of $654.3 million.
- Lifestyle net sales are $328 million, a slight decrease of 1.5% year-over-year, but slightly above the estimate of $326.1 million.
- Health and wellness net sales are $652 million, a minor increase of 0.2% year-over-year, exceeding the estimate of $638.3 million.
- International net sales are $271 million, an 11% drop year-over-year, falling short of the estimate of $280.7 million.
- Organic sales declined by 3%, compared to the estimated 0.93% decline.
- Gross margin improved to 46.5% from last year’s 42.7%, and surpassed the estimate of 43%.
- For the 2025 fiscal year, Clorox forecasts adjusted EPS between $6.55 and $6.80.
- Expected EPS for 2025 is between $4.95 and $5.20.
- Net sales for the upcoming year are projected to be between a decline of 2% and flat growth.
- Organic sales growth is anticipated between 3% and 5%.
- Clorox agrees to sell its Better Health VMS business, including manufacturing and distribution facilities in Sunrise, FL, to Piping Rock Health Products. Financial terms were not disclosed.
- A one-time, after-tax charge between $114 million and $134 million is expected in the first quarter of fiscal year 2025, representing approximately a $1.00 reduction in earnings per share due to the sale.
- The Better Health VMS business represents about 3% of Clorox’s fiscal year 2024 net sales.
- Organic sales for next year are expected to rise between 3% and 5% excluding a 2% negative impact from the divestiture of the Argentina business and a 3% negative impact from the expected sale of the Better Health VMS business.
Clorox Company on Smartkarma
Analyst Coverage of Clorox Company on Smartkarma
Analysts at Baptista Research on Smartkarma are bullish on The Clorox Company, citing a story of innovation-led growth in their recent report titled “The Clorox Company: A Story Of Innovation-Led Growth.” Despite a cyberattack affecting operations, the company’s third-quarter financial results exceeded expectations, with adjusted earnings per share surpassing internal forecasts. Sales performance in Q3 aligned with management’s expectations, indicating a resilient recovery trajectory for Clorox, as highlighted by Baptista Research.
In another report by Baptista Research, titled “The Clorox Company: A Genius Strategy to Crush Digital Transformation and Improve Sales! – Major Drivers,” analysts continue to express a positive outlook for Clorox. The company’s second-quarter financial results for 2024 outperformed expectations, driven by a robust rebound from a previous cyber attack. Clorox’s strategic initiatives to enhance top-line growth, rebuild margins, and manage currency fluctuations have been instrumental in maintaining its brand superiority. Additionally, accelerated retailer inventory refresh rates are facilitating distribution restoration and market share improvement, further bolstering Clorox’s position in the market, as outlined by Baptista Research analysts.
A look at Clorox Company Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, the long-term outlook for Clorox Company appears to be steady. With a Dividend score of 4, investors can expect a relatively strong dividend performance from the company. Additionally, the Momentum score of 3 suggests there is some positive movement in the company’s performance indicators. However, the Value, Growth, and Resilience scores all fall in the lower range, indicating some areas where the company may need to focus on improvement.
The Clorox Company, known for its household cleaning products, charcoal, cat litter, and more, has a diverse product portfolio that appeals to a wide consumer base. While not scoring the highest in all factors, the company’s strong dividend score and global reach position it well in the consumer products industry. Investors may want to keep an eye on how Clorox Company navigates challenges and potential growth opportunities moving forward.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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