We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Clorox Company (CLX - Free Report) was one of the early coronavirus stars both in the real economy and the stock market. But the maker of disinfectant wipes and many other consumer products has seen its stock price tumble in the past year. And its Q4 FY21 earnings fell short of expectations on August 3.
CLX’s Pitch
Clorox’s portfolio includes its namesake disinfectant wipes and other offerings for household cleaning. The company also boasts products made specifically for the healthcare industry. On top of that, the firm’s portfolio includes everything from Kingsford charcoal and Brita water filters to Hidden Valley Ranch.
Many of CLX’s products have been flying off the shelves for the better part of 18 months. The company’s fiscal 2020 revenue (period ended on Jun 30, 2020) climbed 8%, for its strongest sales expansion in over a decade. The consumer goods and cleaning power’s FY21 revenue then surged another 9% to reach $7.34 billion.
Despite the strong fiscal 2021, the company’s fourth quarter sales slipped 9% from the year-ago period. Meanwhile, its adjusted earnings dropped 61% to $0.95 a share to miss our Zacks \estimates by 26%. And CLX provided disappointing earnings guidance, as the nearby chart highlights.
The company's margins also took a hit, driven by costs and more. CLX's Q4 gross margin fell from 46.8% in the year-ago quarter to 37.1%. Clorox stated that "gross margin performance was driven by higher manufacturing and logistics costs, increased commodity costs due to significant cost inflation, decreasing sales resulting in lower manufacturing fixed-cost absorption and unfavorable price mix, partially offset by the benefits of cost savings initiatives."
Image Source: Zacks Investment Research
Bottom Line
Clorox’s recent earnings revisions help it land a Zacks Rank #5 (Strong Sell) at the moment. CLX shares are now down 30% in the past year, including its recent post-release drop. And its FY22 sales and adjusted earnings are projected to slip as it comes up against tough comparisons.
The stock did pop during regular hours Monday and CLX still operates a strong business for the long haul. However, it might be best to stay away from the stock until it shows more signs of a comeback.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Bear of the Day: The Clorox Company (CLX)
The Clorox Company (CLX - Free Report) was one of the early coronavirus stars both in the real economy and the stock market. But the maker of disinfectant wipes and many other consumer products has seen its stock price tumble in the past year. And its Q4 FY21 earnings fell short of expectations on August 3.
CLX’s Pitch
Clorox’s portfolio includes its namesake disinfectant wipes and other offerings for household cleaning. The company also boasts products made specifically for the healthcare industry. On top of that, the firm’s portfolio includes everything from Kingsford charcoal and Brita water filters to Hidden Valley Ranch.
Many of CLX’s products have been flying off the shelves for the better part of 18 months. The company’s fiscal 2020 revenue (period ended on Jun 30, 2020) climbed 8%, for its strongest sales expansion in over a decade. The consumer goods and cleaning power’s FY21 revenue then surged another 9% to reach $7.34 billion.
Despite the strong fiscal 2021, the company’s fourth quarter sales slipped 9% from the year-ago period. Meanwhile, its adjusted earnings dropped 61% to $0.95 a share to miss our Zacks \estimates by 26%. And CLX provided disappointing earnings guidance, as the nearby chart highlights.
The company's margins also took a hit, driven by costs and more. CLX's Q4 gross margin fell from 46.8% in the year-ago quarter to 37.1%. Clorox stated that "gross margin performance was driven by higher manufacturing and logistics costs, increased commodity costs due to significant cost inflation, decreasing sales resulting in lower manufacturing fixed-cost absorption and unfavorable price mix, partially offset by the benefits of cost savings initiatives."
Image Source: Zacks Investment Research
Bottom Line
Clorox’s recent earnings revisions help it land a Zacks Rank #5 (Strong Sell) at the moment. CLX shares are now down 30% in the past year, including its recent post-release drop. And its FY22 sales and adjusted earnings are projected to slip as it comes up against tough comparisons.
The stock did pop during regular hours Monday and CLX still operates a strong business for the long haul. However, it might be best to stay away from the stock until it shows more signs of a comeback.