Stocks

Headlines

Clorox Q3 Earnings Miss Expectations, Shares Decline 2.4%

Clorox shares fell 2.4% amid disappointing Q3 results and guidance. The company reported earnings and sales below expectations, leading to concerns about future performance and market volatility.

Date: 
AI Rating:   4

Clorox's Recent Performance: Clorox's stock has taken a downturn following its Q3 earnings report. The release revealed adjusted earnings per share (EPS) of $1.45, which missed analysts' expectations by $0.11. Furthermore, the company's sales totaled $1.67 billion, which was $50 million short of projections, and represented a year-over-year decline of 7.7%.

The data indicates significant challenges for Clorox. The decrease in sales parallels a drop in net income, as EPS declined by 15%. Despite the substantial drop in sales, Clorox did see an expansion in gross margins, increasing from 42.2% to 44.6%. However, these margin gains have not sufficed to make up for the overall drop in sales figures.

Future Outlook: Moving forward, Clorox now anticipates its sales for the fiscal year to range from a 1% decline to flat growth, a downgrade from previous guidance. Organic sales growth projections have also been reduced, indicating further challenges ahead. The company has kept its adjusted EPS guidance at between $6.95 and $7.35 but seems likely to hit the lower end of that range.

Additionally, Clorox may face performance headwinds due to recent tariff implementations affecting costs, which adds another layer of risk for investors. Overall, while the company maintains some margin growth, the downtrodden sales figures and lowered guidance suggest a challenging environment ahead.

Stocks:  CLX