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Clorox adds 8% on strong results and guidance

Published 02/02/2024, 05:44 AM
Updated 02/02/2024, 05:47 AM
© Reuters.  Clorox (CLX) adds 8% on strong results and guidance

Shares of Clorox (NYSE:CLX) popped 8% in premarket trading Friday after the consumer products company reported better-than-expected FQ2 results and issued strong guidance.

Clorox posted Q2 earnings per share (EPS) of $2.16, topping the consensus estimates of $1.10. Revenue came in at $1.99 billion, up 16% year-over-year and better than the projected $1.8 billion.

Organic sales surged 20% from the year-ago period.

"Our second quarter results reflect strong execution on our recovery plan from the August cyberattack," said Chair and CEO Linda Rendle.

"We are rebuilding retailer inventories ahead of schedule, enabling us to return to merchandising and restore distribution. While there is still more work to do, we're focused on executing with excellence in what remains a challenging environment to drive top-line growth and rebuild margin.”

Gross margin rose 730 basis points to 43.5% in the quarter, compared to 36.2% reported in the same period last year.

Looking ahead, Clorox expects full-year 2024 EPS to be in the range of $5.30 to $5.50, well above Wall Street’s projection of $4.63.

“We have a positive short-term trading call on CLX with consensus far too low, in our view, after a quicker than expected cyber attack recovery but are EW longer-term with an uncertain topline recovery as pricing drops off,” analysts at Morgan Stanley said in a note.

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