The Clorox Company (NYSE:CLX) will release earnings results for the first quarter after the closing bell on Monday, Nov. 3.Analysts expect the company to report quarterly earnings at 78 cents per share, down from $1.86 per share in the year-ago period. The consensus estimate for Clorox's quarterly revenue is $1.4 billion, compared to $1.76 billion a year earlier, according to data from Benzinga Pro.On Oct. 10, JP Morgan analyst Andrea Teixeira maintained a Neutral rating on Clorox and lowered the price targ ...

Core Viewpoint - Clorox Company (CLX) is expected to report significant year-over-year declines in both revenue and earnings for the first quarter of fiscal 2026, primarily due to ERP-related disruptions and macroeconomic challenges [1][3][5]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for fiscal first-quarter revenues is $1.39 billion, reflecting a 21.2% decline from the previous year [2][9]. - The consensus estimate for earnings per share (EPS) has decreased to 78 cents, indicating a 58.1% drop compared to the same quarter last year [2][9]. Operational Challenges - Clorox is facing a challenging start to fiscal 2026, with significant headwinds from ERP-related disruptions and a reduction in retailer inventory built up in late fiscal 2025 [3][4]. - The company anticipates that these ERP transition effects will account for a 14-15 point decline in sales and 200 basis points of margin pressure in the first quarter [4][6]. Margin and Profitability Outlook - Gross margin is projected to be between 41% and 42%, which is below historical levels, primarily due to 200 basis points of pressure from the ERP transition and an additional 100 basis points from storm-related damages [7][9]. - Adjusted operating profit is expected to decline by 50.1% year over year to $165.5 million, with an adjusted operating margin contracting to 11.8% [9]. Market Environment - Clorox operates in a challenging macroeconomic environment, facing increased advertising expenses and stiff competition in the consumer goods sector, which pressures market share and operational performance [8][9]. - The company is also dealing with early impacts of tariffs and elevated selling, general, and administrative (SG&A) costs [8]. Future Outlook - Management remains optimistic about a recovery in the second half of the year as consumption stabilizes and ERP-related effects diminish [5][9]. - Clorox is nearing completion of a multi-year digital transformation, which is expected to enhance supply-chain responsiveness and operational efficiency [12][13].

Core Insights - Consumer-facing businesses with strong brand power are positioned to grow dividends and enhance investor portfolios in the long term [1][2] Group 1: Company Summaries - **Pool Corp.**: The largest wholesale distributor of swimming pools and related supplies, Pool Corp. has established recurring revenue streams through installation and maintenance services. The company has increased its dividend for 14 consecutive years, despite economic downturns, making it a potential buying opportunity as consumer sentiment rebounds [4][6]. - **PepsiCo**: A dominant player in the food and beverage sector, PepsiCo has a diverse portfolio that includes well-known snack brands. The company has increased its dividend for 52 consecutive years, benefiting from strong pricing power and consistent demand for its products [7][8]. - **Clorox**: Known for its cleaning products and household goods, Clorox has maintained a strong return on invested capital averaging 19% over the past decade. The company has a dividend yield of over 4% and is approaching five decades of uninterrupted dividend increases, despite recent challenges [9][10]. - **Home Depot**: As a leading home improvement retailer, Home Depot benefits from a cultural inclination towards home spending. The company has a 15-year dividend growth streak and is expected to continue this trend as housing turnover increases in the coming decade [11][12]. - **Philip Morris International**: Transitioning from traditional cigarettes to smoke-free products, Philip Morris generates over 40% of its sales from next-generation products. The company has consistently raised its dividend since 2008, indicating strong growth potential in the evolving nicotine market [13][14].

Core Insights - The article discusses consumer stocks with high-yielding dividends and a history of payout increases, highlighting the balance between dividend yield and associated risks [1][2]. Group 1: Realty Income - Realty Income is known as the "monthly dividend company," owning over 15,600 single-tenant, net-leased properties, allowing it to avoid income tax on operational income by distributing over 90% of net income as dividends [3][4]. - The company has consistently increased its monthly dividend since 1994, currently offering an annual dividend of over $3.23 per share, translating to a cash return of over 5.3% [4][8]. - Realty Income faced challenges during the pandemic and rising interest rates, leading to a stock price discount of approximately 24% from its early 2020 high [5][6]. - With declining interest rates, Realty Income is positioned to reduce costs and expand, trading at about 15 times its funds from operations (FFO) income of $4.11 per share [7][8]. Group 2: Clorox - Clorox, known for its cleaning products, experienced a surge in demand during the pandemic but has since faced a decline in stock price, trading at about a 50% discount from its all-time high [9][11]. - The company has been impacted by a cyberattack in 2023, disrupting its supply chain and leading to product shortages [10][11]. - Despite these challenges, Clorox maintains a history of dividend increases, currently offering an annual payout of $4.96 per share, resulting in a dividend yield of over 4.1% [13][14]. - Clorox's price-to-earnings ratio is 18, below the S&P 500 average of 31, making it attractive for dividend investors seeking potential stock-price appreciation [13][14][15].

Company Overview - The Clorox Company (CLX) is a California-based consumer products firm known for its cleaning, household, and personal care brands, with a market cap of $14.6 billion and operations in over 100 countries employing about 8,000 people [1] Earnings Expectations - Clorox is expected to release its Q1 results on November 3, with analysts predicting an EPS of $0.78, a decline of 58.1% from $1.86 in the same quarter last year [2] - For fiscal 2026, EPS is projected to be $5.85, down 24.2% from $7.72 in fiscal 2025, but is expected to rise by 14.2% to $6.68 per share in fiscal 2027 [3] Stock Performance - CLX stock has decreased by 26.4% over the past 52 weeks, significantly underperforming the S&P 500 Index's 14.1% returns and the Consumer Staples Select Sector SPDR Fund's 2.8% increase during the same period [4] - Despite the stock's decline, Clorox announced a quarterly dividend of $1.24 on September 16, which led to a 1.7% increase in share price, highlighting its commitment to shareholder returns [5] Analyst Ratings - The consensus rating for CLX stock is "Hold," with 19 analysts providing ratings that include one "Strong Buy," 14 "Holds," and four "Strong Sell" ratings [6] - The mean price target for CLX is $128.44, indicating a potential upside of 7.3% from the current price level [6]

Group 1: Philip Morris - Philip Morris International Inc. has a history of increasing dividends for 17 consecutive years, with the latest increase on September 19 raising the quarterly payout from $1.35 to $1.47 per share, resulting in an annual figure of $5.88 per share [3] - The current dividend yield for Philip Morris stock is 3.69% [3] - The company's annual revenue as of June 30 is reported at $39.06 billion, with Q2 2025 revenues of $10.14 billion, which missed the consensus estimate of $10.30 billion, while EPS of $1.91 exceeded the consensus of $1.85 [4] Group 2: Southern Company - The Southern Company has raised its dividends for 24 consecutive years, with the most recent increase on April 21 raising the quarterly payout from $0.72 to $0.74, equating to an annual figure of $2.96 per share [5] - The current dividend yield for Southern Company stands at 3.02% [5] - The company's annual revenue as of June 30 is reported at $28.36 billion, with Q2 2025 revenues of $6.97 billion and EPS of $0.92, both surpassing consensus estimates [6] Group 3: Clorox - The Clorox Company is a global manufacturer and marketer of consumer and professional products, with a diverse portfolio that includes cleaning and disinfecting products, food products, and personal care items [7]

Core Viewpoint - The Clorox Company (NYSE:CLX) is facing challenges due to slowing consumer demand, but its strong dividend history and cash flow remain positive aspects for investors [2][3][4]. Group 1: Company Performance - JPMorgan analyst Andrea Teixeira has lowered the price target for Clorox from $135 to $127 while maintaining a Neutral rating [3]. - The company reported net cash from operations of $981 million in 2024, a 41% increase from $695 million in the previous fiscal year [4]. - Clorox has raised its dividend for 22 consecutive years, currently offering a quarterly dividend of $1.24 per share, resulting in a dividend yield of 4.16% as of October 14 [4]. Group 2: Market Conditions - The household, personal care, and beauty sectors are expected to experience another weak quarter due to subdued consumer demand in the US and slowing trends in Western Europe [3]. - Retailers are continuing to scale back their inventories, exacerbating the demand issues faced by Clorox and other large-cap firms in the sector [3].

Market Trends - The current trend for stocks remains bullish, particularly for technology and AI stocks, despite signs of economic slowdown [1] - The government shutdown may have a larger ripple effect on the economy, contrasting with the government's previous rescue actions in 2021 [2] - Investors are advised to consider adding defensive stocks due to ongoing economic uncertainty [2] Costco Wholesale - Costco has proven its value to consumers and investors, with a steady increase in membership fees and strong sales growth [4][5] - The stock has provided a total return of over 175% due to year-over-year comparable sales growth, buybacks, and dividends [5] - Despite its high share price of over $930, Costco's valuation remains reasonable compared to its historical performance [6] Chevron - Chevron has faced challenges as energy stocks have not performed well for growth investors, with crude oil prices not rising as expected [7] - The company is well-positioned in the LNG market, particularly in Asia, which is expected to drive revenue growth as markets shift away from coal [8] - Analysts forecast earnings growth of over 16.5%, suggesting Chevron stock may be undervalued at around 13x earnings [9] Clorox - Clorox is viewed as a contrarian pick among defensive stocks, with its stock trading near six-year lows due to post-pandemic demand struggles [11] - The company is modernizing operations and improving operating margins, which may present a buying opportunity despite bearish sentiments [12] - Clorox's stock has established a solid technical support base around $118, but it needs to demonstrate revenue and earnings growth to regain investor confidence [13]

Core Insights - The Clorox Company (NYSE:CLX) is recognized as one of the Top 15 Growth Stocks for Long-Term Investors [1] Company Overview - Clorox has a history of over a century, with its first product, liquid bleach, introduced in 1913, and has since become a global producer of consumer and professional products [2] - The company offers a diverse range of brands that cater to various markets, providing significant scale and a strong presence across multiple product categories [2] Marketing and Brand Investment - Clorox maintains its leadership position through substantial advertising efforts, planning to spend approximately 11% of its net sales on advertising and promotions in fiscal 2026 [3] - This investment underscores the company's commitment to supporting its brands and sustaining market strength [3] Product Demand and Market Resilience - A key advantage of Clorox's business model is the everyday nature of its products, which are used by millions of consumers regardless of economic conditions [4] - The company estimates that its products are found in about nine out of ten U.S. households [4] - Demand for cleaning supplies and food products remains steady even during economic downturns, allowing Clorox to maintain profitability through various cycles [5] Dividend Growth - Clorox has a strong track record of increasing its dividend, with a growth streak spanning 22 years [5] - The company currently offers a quarterly dividend of $1.24 per share, resulting in a dividend yield of 4.13% as of October 12 [5]

Group 1 - The Clorox Company will announce its first-quarter fiscal year 2026 results on November 3, 2025 [1] - The announcement will include a press release and prepared management remarks, followed by a live Q&A audio webcast with the Chair and CEO Linda Rendle and CFO Luc Bellet [3] - Clorox has been recognized for its commitment to sustainability, ranking No. 1 on Barron's 100 Most Sustainable Companies list for three consecutive years [2] Group 2 - Clorox's trusted brands include Brita®, Burt's Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr®, and Pine-Sol®, along with international brands such as Clorinda®, Chux®, and Poett® [2] - The company has been headquartered in Oakland, California, since 1913 and was one of the first in the U.S. to integrate ESG into its business reporting [2]