Clorox stock gains after earnings beat, CEO expresses confidence in full-year outlook
Shares of Clorox Inc.
CLX,
were up more than 5% in after-hours trading Monday after the maker of cleaning supplies and other household products topped expectations for its latest quarter and expressed confidence in its full-year forecast despite a “volatile” environment. Clorox posted fiscal first-quarter net income of $142 million, or $1.14 a share, down from $415 million, or $3.22 a share, in the year-prior quarter. The company attributed the decline mainly to its lower gross margins and sales, as well as to a “one-time, non-cash remeasurement gain in the year-ago quarter related to the company’s investment in the Kingdom of Saudi Arabia joint venture.” Clorox reported earnings per share of $1.21 when excluding 7 cents a share related to “investments in the company’s long-term strategic digital capabilities and productivity enhancements.” Clorox’s adjusted EPS for the quarter was down from $2.63 a year earlier, but it exceeded the FactSet consensus, which called for $1.03. The company generated revenue of $1.81 billion, down from $1.92 billion a year earlier but ahead of the FactSet consensus, which modeled $1.70 billion. “We made meaningful progress on restoring supply – which contributed to holding or gaining market share in the vast majority of our businesses – and we’re pulling multiple levers to manage through this inflationary period,” Chief Executive Linda Rendle said in a release. “This includes pricing actions and stepping up our cost reduction initiatives, which will help us rebuild margins and create fuel to reinvest in the business.” Despite her expectation for continued “cost pressures” and a “volatile” environment, she added that Clorox remains on track with its fiscal 2022 outlook. Shares of Clorox have lost about 19% so far this year as the S&P 500
SPX,
has risen 23%.
