The Clorox Company (CLX - Free Report) reported fourth-quarter fiscal 2016 results, wherein earnings of $1.26 per share declined 12.5% year over year and missed the Zacks Consensus Estimate of $1.28. The fall is attributed to incremental investments in the company’s brands in order to support its product innovation strategy, which aims at delivering long term profitable growth.
Going into fiscal 2017, the company remains confident of its growth strategy, as was reflected by its robust outlook. The company expects adjusted earnings in the range of $5.13–$5.28 per share for fiscal 2017, while GAAP earnings are anticipated in the range of $5.38–$5.58 per share. GAAP earnings for fiscal 2017 will include a benefit of 25–30 cents per share from the adoption of ASU 2016-09.
Earnings Estimate Revision: The Zacks Consensus Estimate has remained largely stable going into the earnings release. If we look at Clorox’s performance in the trailing four quarters (including the quarter under review), the company has outperformed the Zacks Consensus Estimate in three of the four quarters, resulting in an average surprise of 7.2%.
Revenues: Clorox generated net sales of $1,600 million that climbed 2.8% year over year and surpassed the Zacks Consensus Estimate of $1,587 million. The increase was backed by solid volume growth, the acquisition of RenewLife in May 2016 and improved prices in the International division, offset by currency headwinds. On a currency-adjusted basis, sales were up 5%.
The company expects sales growth of 2%–4% in fiscal 2017, with currency-neutral sales growth expected in the range of 4%–6%. Sales in fiscal 2017 are expected to gain from its RenewLife acquisition, partially offset by currency headwinds.
Zacks Rank: Currently, Clorox carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
Check back later for our full write up on Clorox’s earnings report!
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The Clorox Company (CLX - Free Report) reported fourth-quarter fiscal 2016 results, wherein earnings of $1.26 per share declined 12.5% year over year and missed the Zacks Consensus Estimate of $1.28. The fall is attributed to incremental investments in the company’s brands in order to support its product innovation strategy, which aims at delivering long term profitable growth.
Going into fiscal 2017, the company remains confident of its growth strategy, as was reflected by its robust outlook. The company expects adjusted earnings in the range of $5.13–$5.28 per share for fiscal 2017, while GAAP earnings are anticipated in the range of $5.38–$5.58 per share. GAAP earnings for fiscal 2017 will include a benefit of 25–30 cents per share from the adoption of ASU 2016-09.
Earnings Estimate Revision: The Zacks Consensus Estimate has remained largely stable going into the earnings release. If we look at Clorox’s performance in the trailing four quarters (including the quarter under review), the company has outperformed the Zacks Consensus Estimate in three of the four quarters, resulting in an average surprise of 7.2%.
Revenues: Clorox generated net sales of $1,600 million that climbed 2.8% year over year and surpassed the Zacks Consensus Estimate of $1,587 million. The increase was backed by solid volume growth, the acquisition of RenewLife in May 2016 and improved prices in the International division, offset by currency headwinds. On a currency-adjusted basis, sales were up 5%.
The company expects sales growth of 2%–4% in fiscal 2017, with currency-neutral sales growth expected in the range of 4%–6%. Sales in fiscal 2017 are expected to gain from its RenewLife acquisition, partially offset by currency headwinds.
Zacks Rank: Currently, Clorox carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
Check back later for our full write up on Clorox’s earnings report!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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