Clorox (CLX) Tops Q1 EPS by 48c; maintains guidance

Clorox (NYSE: CLX) reported Q1 EPS of $1.55, $0.48 better than the analyst estimate of $1.07. Revenue for the quarter came in at $1.91 billion versus the consensus estimate of $1.88 billion.

GUIDANCE:

Clorox sees FY2027 EPS of $5.70-$6.00, versus the consensus of $5.70.

Net sales are still expected to be up 13% to 14% compared to the prior year, including about 9.5 points of benefit from the GOJO acquisition. Organic sales are expected to increase about 3.5% to 4.5%, including more than 3.5 points of benefit from lapping the ERP-related drawdown in the prior fiscal year.

Gross margin is now expected to be about 41.5%, reflecting higher-than-normal inflationary headwinds and negative mix more than offsetting the benefits from cost savings and pricing actions. This includes about 20 basis points of negative impact primarily related to the GOJO inventory step-up.

Selling and administrative expenses are now expected to be about 15.5% of net sales. This includes about 40 basis points of negative impact from GOJO transaction-related costs.

Advertising and sales promotion spending is still expected to be about 10% of net sales. This assumes about 12% of net sales for its retail businesses.

The company\'s effective tax rate is still expected to be about 23%.

Diluted EPS is still expected to be between $5.41 and $5.71, a year-over-year increase of 12% to 19%, respectively. This includes about 29 cents of impact from transaction-related costs associated with the GOJO acquisition, which are expected to flow through cost of goods sold as well as selling and administrative expenses.

For earnings history and earnings-related data on Clorox (CLX) click here.

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