Clorox Reports Quarterly Profit and Sales Above Expectations

Shares of Clorox Co. jumped 7% in the extended session on Wednesday, following the company's release of its quarterly financial results. Clorox, known for its eponymous cleaning products, reported both profit and sales that exceeded Wall Street's expectations. Additionally, the company provided optimistic outlook for higher earnings and revenue for the year.

Strong Financial Performance

Clorox's fiscal fourth-quarter earnings reached $176 million, or $1.42 per share, compared to $101 million, or 81 cents, in the same period last year. After adjusting for one-time items, the company reported earnings of $1.67 per share, surpassing the FactSet consensus estimate of $1.17.

Sales for the quarter experienced a notable growth of 12%, reaching $2 billion. This increase was primarily attributed to a "favorable" price mix, which more than compensated for lower volumes. The analysts surveyed by FactSet had predicted sales of $1.88 billion for the quarter.

Optimistic Outlook

Looking ahead, Clorox expects sales for fiscal 2024 to remain flat or increase by up to 2%. Furthermore, the company projects adjusted earnings per share between $5.60 and $5.90 for the year. This would mark a growth rate of 10% to 16% compared to the previous year.

In a challenging economic environment for consumers, Clorox aims to maintain its topline growth while simultaneously rebuilding margins in light of ongoing inflationary pressures. The analysts polled by FactSet predict adjusted earnings per share of $5.62 on sales of $7.4 billion for fiscal 2024.

Conclusion

The positive quarterly results and upbeat outlook from Clorox have contributed to a 7% surge in the company's stock price in after-hours trading. With the strong financial performance, Clorox shows resilience amidst prevailing economic challenges.