Management reduced its fiscal year outlook.Clorox (CLX -5.57%) investors were seeing red on Wednesday morning. The consumer staples stock fell 6% in early morning trading while the S&P 500 declined just 0.3%. That drop added to a tough period for shareholders, with Clorox down 16% in the past full year compared to a 20% surge in the wider market.Wednesday's early decline came after management updated its 2024 outlook following another tough quarter on sales.Sales are downClorox said in a premarket earnings ...

The Clorox Company (CLX) reported third-quarter fiscal 2024 results, wherein the bottom line beat the Zacks Consensus Estimate and improved year over year. Significant gains from pricing actions and ongoing cost-saving initiatives aided the performance. Results also benefited from a solid innovation pipeline and digital transformation. CLX has been on track with its streamlined operating model, which aims to improve efficiency.Shares of this currently Zacks Rank #3 (Hold) company have risen 17.1% in the pas ...

Financial Data and Key Metrics Changes - The company reported an increase in gross margin, attributed to the margin transformation program, despite lower sales and significant investments in brands [4][5] - Adjusted earnings per share exceeded expectations, indicating a recovery trajectory post-cyber-attack [4][5] Business Line Data and Key Metrics Changes - The company regained nearly 90% of the market share lost due to the cyber-attack and anticipates further recovery in Q4 [5][58] - Sales were lower in Q3 due to slower supply recovery in certain businesses, particularly Glad and Litter [21][58] Market Data and Key Metrics Changes - The company experienced a decline in distribution points compared to pre-cyber levels, but plans to fully restore these by the end of Q4 [26][58] - The competitive landscape has intensified, with increased promotional activities from competitors during the recovery phase [65][106] Company Strategy and Development Direction - The company is focused on executing its IGNITE strategy to build a stronger, more resilient organization while navigating the recovery from the cyber-attack [6][21] - The divestiture of the Argentina business is part of a strategy to evolve the portfolio for more consistent and profitable growth [23][112] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in restoring lost distribution and improving household penetration as service levels normalize [5][66] - The outlook for fiscal 2025 remains uncertain, but management expects to continue expanding margins and growing earnings [71][72] Other Important Information - The company is seeing a moderate inflation environment, with expectations of continued cost savings to offset inflationary pressures [36][125] - Increased advertising and promotional spending is planned to recapture consumers lost during the cyber-attack [100][127] Q&A Session All Questions and Answers Question: Can you provide more details on the implied Q4 organic sales growth? - Management discussed dynamics expected in Q4, including improved volume trends and a return to pre-pandemic merchandising levels, which should support growth [9][10] Question: What areas are still below in market share and how confident are you in regaining consumers? - Management indicated that they lost about 5 points of market share during the cyber-attack but have made significant progress in regaining it [32][78] Question: How do you see rising prices in commodities affecting margins? - Management acknowledged that while there will be some cost inflation, their margin transformation efforts are expected to offset these increases [36][59] Question: What impact did the divestiture of the Argentina business have on margins? - The divestiture is expected to improve margins as Argentina was a margin-dilutive business, and its exit will eliminate associated FX impacts [91][133] Question: How is the company addressing competitive pressures in the market? - Management noted that they are increasing promotional spending to regain market share and are confident in their brand's value proposition [106][100]

Clorox (CLX) reported $1.81 billion in revenue for the quarter ended March 2024, representing a year-over-year decline of 5.3%. EPS of $1.71 for the same period compares to $1.51 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.88 billion, representing a surprise of -3.49%. The company delivered an EPS surprise of +28.57%, with the consensus EPS estimate being $1.33.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Financial Performance - For the fiscal quarter ended March 31, 2024, the Company reported a net sales decrease of 3% compared to the prior year, with a total of $315 million in net sales [53]. - The gross profit for the three months ended March 31, 2024, was $766 million, reflecting a 4% decrease from $800 million in the same period last year, while the gross margin improved to 42.2% from 41.8% [55]. - Selling and administrative expenses increased by 5% to $899 million, representing 17.3% of net sales, compared to 15.9% in the prior year [56]. - Diluted net earnings per share increased by $1.30, or 76%, in the current three-month period, driven by noncash impairment charges in the prior period and cost savings [62]. - The Argentina divestiture resulted in a net sales decrease of 10% to $54 million for the three months ended March 31, 2024 [98]. - Net sales growth for the total company decreased by 5% year-over-year, with specific segments showing declines: Health and Wellness down 6%, Household down 4%, and Lifestyle down 11% [114]. Cost and Savings Initiatives - The Company expects annual cost savings of approximately $75 to $100 million from its streamlined operating model once fully implemented [59]. - The Company continues to implement price increases and cost-saving measures to address inflationary pressures and supply chain challenges [76]. - Total external consulting fees for the nine months ended March 31, 2024, increased to $65 million from $58 million for the same period in 2023, reflecting a growth of approximately 12% [112]. Cash Flow and Investments - The Company reported a net cash provided by operations of $355 million for the nine months ended March 31, 2024, down from $728 million in the prior period [99]. - Net cash used for investing activities was $94 million in the current nine-month period, compared to $142 million in the prior period [102]. - The Company expects to generate positive cash flows from operations in the future, supported by its strong credit ratings and current borrowing availability [103]. Cyberattack Impact - The cyberattack is anticipated to negatively impact fiscal year 2024 results, with some net sales recognized in the second and third quarters due to disruptions [49]. - Volume decreased by 4% in the current three-month period, primarily due to distribution losses in Cleaning resulting from the cyberattack [65]. - The company experienced operational disruptions due to a cyberattack that began on August 11, 2023, impacting business operations throughout the first fiscal quarter of 2024 [122]. - The company has implemented business continuity plans, including manual ordering and processing procedures, to mitigate the impact of the cyberattack [122]. Segment Performance - The International segment reported a 2% increase in net sales, with a segment adjusted EBIT increase of 41% in the current nine-month period [69]. - For the Health and Wellness segment, net sales decreased by 6% to $609 million for the three months ended March 31, 2024, and by 3% to $1.833 billion for the nine months ended March 31, 2024 [90]. - Segment adjusted EBIT for the Health and Wellness segment decreased by 4% to $154 million for the three months ended March 31, 2024 [90]. Market Conditions and Risks - The company is facing intense competition and changing consumer preferences, which are affecting its market performance [117]. - The company has identified risks related to its reliance on information technology systems, including potential security breaches and operational disruptions [117]. - The company continues to evaluate its market risk and has not reported any material changes since June 30, 2023 [121]. Tax and Dividends - The effective tax rate on earnings for the current three-month period was (18.6)%, significantly lower than 14.7% in the prior year, primarily due to the divestiture of the Argentina business [60]. - The Company declared dividends per share of $1.20 for the three months ended March 31, 2024, compared to $1.18 for the same period in 2023 [105]. Financing and Credit - As of March 31, 2024, the Company maintained $34 million of foreign and other credit lines, with $9 million outstanding [78]. - The Company had two stock repurchase programs with an authorized aggregate purchase amount of up to $2 billion, but there were no share repurchases during the three and nine months ended March 31, 2024 and 2023 [79]. Sales Growth - Organic sales growth for the total company was reported at 2%, with international sales showing a significant increase of 48% [114]. - The company noted a foreign exchange impact contributing an additional 7% to sales growth, primarily from international operations [114].

The following are recent highlights of business and environmental, social and governance achievements: The following is a summary of key third-quarter results by reportable segment. Third-quarter results reflect the March 20, 2024 divestiture of the company's Argentina business and all comparisons are with the third quarter of fiscal year 2023 unless otherwise stated. Prior periods presented have been recast to reflect the reportable segment changes effective in the fourth quarter of fiscal year 2023. 2 Adj ...

OAKLAND, Calif., Apr. 30, 2024 /PRNewswire/ -- The Clorox Company (NYSE: CLX) today reported results for the third quarter of fiscal year 2024, which ended Mar. 31, 2024. Third-Quarter Fiscal Year 2024 Summary Following is a summary of key results for the third quarter, which reflect continued operational recovery from the previously announced cyberattack. Third-quarter results reflect the March 20, 2024 divestiture of the company's Argentina business and all comparisons are with the third quarter of fiscal ...

The Clorox Company (CLX) is likely to register a decline in the top and bottom lines when it reports third-quarter fiscal 2024 results on Apr 30, 2024, before market open.The Zacks Consensus Estimate for quarterly revenues is pegged at $1.88 billion, suggesting a decrease of 1.9% from the prior-year quarter’s reported figure.The Zacks Consensus Estimate for quarterly earnings has declined 1.5% in the past 30 days to $1.33 per share. The consensus mark indicates an 11.9% decline from $1.51 reported in the pr ...

Investors are always looking for stocks that are poised to beat at earnings season and The Clorox Company (CLX) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Clorox is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indi ...

OAKLAND, Calif., April 23, 2024 /PRNewswire/ -- The Clorox Company (NYSE: CLX) today announced that Chair and Chief Executive Officer Linda Rendle will participate in a fireside chat at the Goldman Sachs Global Staples Forum on Tuesday, May 14, 2024. The webcast will begin at approximately 8:15 a.m. ET (5:15 a.m. PT) and can be accessed on the company's website. A replay of the webcast will be available following the event. About The Clorox Company The Clorox Company (NYSE: CLX) champions people to be well ...