Raymond James Reiterates Market Perform Rating on Clorox (CLX)

Raymond James analyst Olivia Tong reiterated a Market Perform rating on Clorox (NYSE: CLX).

The analyst comments "CLX reported F3Q results below expectations, with EPS $1.45 vs. our $1.57 estimate and Bloomberg/StreetAccount consensus $1.57/$1.55. Organic sales were -2% y/y vs. our flat estimate and StreetAccount consensus +1%. Slowing consumption, which fell 4 pts through the quarter and ended up flat for F3Q, along with retailer destocking, pressured results. Gross margin continued to be a bright spot, +240 bp to 44.6% vs. RJe 43.7% and Bloomberg/StreetAccount consensus 43.8%/44.0%. The F4Q/FY25 outlook disappointed, with organic sales now expected to be +4-5% vs. prior +4-7%, or +2% vs. prior +3-5% excluding the sales pullforward into F4Q25 ahead of the F1Q26 ERP transition (now expected to contribute 2-3 pts vs. +1 pt prior). While the FY25 EPS outlook of $6.95-$7.35 remained unchanged, it now includes a benefit from the pull forward of $0.50-$0.70 vs. the prior $0.25-$0.45, while gross margin is now expected to expand +150 bp vs. the prior range of +125-150 bp. Overall, categories are weakening, with Household hardest hit, and we see risk that promotion levels will begin to creep up with consumers under pressure and heavy competition in key categories like Litter and Bags & Wraps. While private label share remained stable and CLX held share in aggregate in F3Q, we are cautious on the choppy backdrop and maintain our Market Perform rating."

For an analyst ratings summary and ratings history on Clorox click here. For more ratings news on Clorox click here.

Shares of Clorox closed at $138.39 yesterday.

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