Clorox (NYSE: CLX) reported Q4 EPS of $2.41, $0.42 better than the analyst estimate of $1.99. Revenue for the quarter came in at $1.98 billion versus the consensus estimate of $1.87 billion.

Clorox Provides Fiscal Year 2021 Outlook

• Flat to low single-digit increase in sales (flat to low single-digit increase in organic sales growth)
• Mid-single-digit decrease to mid-single-digit increase in diluted EPS

Clorox believes it is important to provide management's current business perspective and financial outlook for fiscal year 2021, recognizing there is significant uncertainty about future COVID-19 impacts related to various areas of its business. Although the magnitude of future COVID-19 impacts on Clorox's fiscal year 2021 financial results remains uncertain, its outlook reflects the following current key assumptions:

• Continued elevated global demand for cleaning and disinfecting products.
• Aggressive investments in the long-term momentum in Clorox's global portfolio, including increasing production capacity.
• Job security and discretionary spending pressures on consumers as a result of an ongoing recession.
• Minimal disruptions to its extended supply chain and other operations, allowing Clorox to continue producing products to meet demand.

Clorox anticipates sales growth ranging from flat to low single digits, reflecting the expectation for continued elevated demand through the first half of the fiscal year and a deceleration in the back half from lapping of the initial spike in demand from COVID-19. Fiscal year 2021 sales reflect about 1 point of positive impact from the company's increased stake in its Kingdom of Saudi Arabia joint venture, offset by about 1 point of negative impact from foreign exchange rates, primarily in Argentina. Fiscal year organic sales are also expected to be in a range from flat to low single-digit growth.

Advertising and sales promotion spending is expected to increase to about 11% of sales.

Clorox anticipates selling and administrative expenses to be about 14% of sales.

The company's effective tax rate is expected to be in the range of 22%-23%.

Net of all these factors, Clorox anticipates fiscal year 2021 diluted EPS range is expected to be from a mid-single-digit decrease to a mid-single-digit increase. The company's diluted EPS outlook includes an estimated contribution of 45 to 53 cents in fiscal year 2021 as a result of the company's increased stake in the Kingdom of Saudi Arabia joint venture, due primarily to a one-time non-cash gain associated with a fair value adjustment to the company's previously held stake, which will be recognized in the first quarter of fiscal year 2021. On a full year basis, this one-time gain will be offset by the company's expectations for a higher tax rate and foreign currency headwinds for the company.

"I'm pleased that we were able to deliver strong financial performance for both the fourth quarter and fiscal year 2020," said Chief Financial Officer Kevin Jacobsen. "Our focus now is building on this momentum, investing aggressively in brand-building and category growth as well as in production capacity to meet heightened demand. We feel confident these investments will allow us to capitalize on new opportunities, supporting our ambition to accelerate profitable growth and generate long-term shareholder value."

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