Clorox (CLX) Reports In-Line Q4 EPS, Guidance Misses

Clorox (NYSE: CLX) reported Q4 EPS of $0.93, in-line with the analyst estimate of $0.93. Revenue for the quarter came in at $1.8 billion versus the consensus estimate of $1.86 billion.

GUIDANCE:

Clorox sees FY2023 EPS of $3.82-$4.22, versus the consensus of $5.26.

• Net sales decreased 3% (2% organic sales decrease) primarily due to 5 points of lower volume and 1 point of unfavorable foreign exchange rates, partially offset by 3 points of favorable price mix. The three-year average growth rate for net sales was 5%.
• Gross margin decreased 780 basis points to 35.8% from 43.6% in the year-ago period. The decrease was driven by higher manufacturing and logistics costs, increased commodity costs, and unfavorable mix, which were partially offset by the benefits of pricing and cost savings initiatives.
• Diluted EPS decreased 33% to $3.73 from $5.58 due to lower sales and gross margin, the one-time, noncash remeasurement gain recognized on the previously held equity interest in the Saudi joint venture in the prior period and investments in the company's long-term strategic digital capabilities and productivity enhancements. These factors were partially offset by the noncash impairment charges on assets held by the VMS business in the prior period.
• Adjusted EPS decreased 43% to $4.10 from $7.25, mainly driven by lower sales and gross margin, partially offset by lower advertising investments.
• Net cash provided by operations was $786 million, compared to $1.3 billion in fiscal year 2021, representing a 38% decrease.

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

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