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Clorox Reports Higher EPS Despite Revenue Decline

In a recent report, Clorox Co. announces earnings growth, revealing EPS at $1.54 which surpassed expectations. However, a revenue drop of 15.3% may concern investors. Clorox's future EPS guidance indicates cautious optimism.

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AI Rating:   6

Earnings Per Share (EPS): Clorox Co. reported an impressive increase in its earnings per share to $1.54 for the second quarter, compared to $0.75 per share last year. Adjusted EPS of $1.55 also exceeded analyst expectations of $1.40. This shows a strong performance in profitability despite other challenges.

Revenue Growth: On the other side, the company's revenue experienced a significant decline of 15.3%, dropping from $1.990 billion last year to $1.686 billion this year. This downward trend in revenue could raise alarms about the company's sales performance and market demand for its products.

Full Year EPS Guidance: Clorox further provided guidance for full year EPS between $5.52 and $5.92. This range indicates an expectation for continued earnings growth, albeit overshadowed by the revenue decline.

In summary, while the EPS results from Clorox are favorable and exceed expectations, the considerable drop in revenue presents a mixed outlook. Investors may need to weigh the strong earnings against the negative revenue trend to assess the potential impact on stock prices.