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Clorox (CLX) to Report Q3 Earnings: What's in the Cards?
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The Clorox Company (CLX - Free Report) is likely to report an increase in its top line from the year-ago quarter’s reported figure when it releases third-quarter fiscal 2022 results on May 2. The Zacks Consensus Estimate for revenues in the fiscal third quarter is currently pegged at $1.81 billion, suggesting a rise of 1.5% from the prior-year quarter’s reported figure.
However, the bottom line is expected to fall from the prior-year quarter’s reported number. Quarterly earnings stand at 97 cents a share, suggesting a plunge of roughly 40% from the year-earlier quarter’s tally. The consensus estimate for the quarterly earnings has been revised 7.6% downward over the past 30 days.
This consumer products’ manufacturer has a trailing four-quarter negative earnings surprise of 2.9%, on average. Clorox delivered a negative earnings surprise of 15.4% in the last reported quarter.
Key Factors to Note
Clorox has been grappling with higher manufacturing and logistics costs as well as increased commodity costs for a while. Also, elevated input and transportation costs are deterrents. The aforesaid expenses coupled with higher advertising and sales promotion investments persist as headwinds.
Elevated investments toward enhancing CLX’s digital capabilities and productivity as well as increasing its brand awareness to support its innovation pipeline are adding up to the costs. These downtrends might have affected Clorox’s margins and its bottom-line performance in the to-be-reported quarter.
We note that demand for disinfecting and cleaning products has been sluggish for a while now compared to the last-year level when the pandemic was at its peak. CLX might have witnessed moderating demand in the quarter under review. Unfavorable foreign currency translations are also acting as headwinds.
On the flip side, Clorox’s sales for the fiscal third quarter might have benefited from continued gains from the execution of its IGNITE strategy, which mainly focuses on expanding the key elements to pace up innovation in every area of its business. Strength in the core International business on the success of the segment's Go Lean strategy is also expected to have aided CLX. These positives might have cushioned the quarter to a certain extent.
What the Zacks Model Predicts
Our proven model doesn’t conclusively predict an earnings beat for Clorox this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Clorox has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%, making surprise prediction difficult.
Stocks With Favorable Combination
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this season:
Celsius Holdings (CELH - Free Report) currently has an Earnings ESP of +12.50% and a Zacks Rank #3. CELH is expected to register top- and bottom-line growth when it reports the first-quarter 2022 numbers. The Zacks Consensus Estimate for CELH’s quarterly revenues is pegged at $117.6 million, which suggests growth of 135% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Celsius Holdings’ quarterly earnings has moved a penny up in the past 30 days to 3 cents per share, suggesting a significant improvement from a penny recorded in the year-ago quarter. CELH delivered an earnings beat of 156.3%, on average, in the trailing four quarters.
Corteva (CTVA - Free Report) currently has an Earnings ESP of +0.70% and a Zacks Rank of 3. CTVA is anticipated to register top and bottom-line growth when it reports the first-quarter 2022 results. The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $4.52 billion, indicating an improvement of 8.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Corteva’s bottom line has been unchanged in the past 30 days at 81 cents per share, suggesting growth of 2.5% from the year-ago quarter’s reported figure. CTVA delivered an earnings beat of 21.9%, on average, in the trailing four quarters.
The Estee Lauder Companies (EL - Free Report) currently has an Earnings ESP of +0.98% and is Zacks #3 Ranked. EL is anticipated to register top and bottom-line growth when it reports the third-quarter fiscal 2022 results. The Zacks Consensus Estimate for EL’s quarterly revenues is pegged at $4.32 billion, indicating an improvement of 11.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Estee Lauder’s bottom line has moved up 3 cents in the past 30 days to $1.66 per share. The consensus estimate suggests growth of 2.5% from the prior-year quarter’s level. EL delivered an earnings beat of 26.5%, on average, in the trailing four quarters.
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Clorox (CLX) to Report Q3 Earnings: What's in the Cards?
The Clorox Company (CLX - Free Report) is likely to report an increase in its top line from the year-ago quarter’s reported figure when it releases third-quarter fiscal 2022 results on May 2. The Zacks Consensus Estimate for revenues in the fiscal third quarter is currently pegged at $1.81 billion, suggesting a rise of 1.5% from the prior-year quarter’s reported figure.
However, the bottom line is expected to fall from the prior-year quarter’s reported number. Quarterly earnings stand at 97 cents a share, suggesting a plunge of roughly 40% from the year-earlier quarter’s tally. The consensus estimate for the quarterly earnings has been revised 7.6% downward over the past 30 days.
This consumer products’ manufacturer has a trailing four-quarter negative earnings surprise of 2.9%, on average. Clorox delivered a negative earnings surprise of 15.4% in the last reported quarter.
Key Factors to Note
Clorox has been grappling with higher manufacturing and logistics costs as well as increased commodity costs for a while. Also, elevated input and transportation costs are deterrents. The aforesaid expenses coupled with higher advertising and sales promotion investments persist as headwinds.
Elevated investments toward enhancing CLX’s digital capabilities and productivity as well as increasing its brand awareness to support its innovation pipeline are adding up to the costs. These downtrends might have affected Clorox’s margins and its bottom-line performance in the to-be-reported quarter.
We note that demand for disinfecting and cleaning products has been sluggish for a while now compared to the last-year level when the pandemic was at its peak. CLX might have witnessed moderating demand in the quarter under review. Unfavorable foreign currency translations are also acting as headwinds.
On the flip side, Clorox’s sales for the fiscal third quarter might have benefited from continued gains from the execution of its IGNITE strategy, which mainly focuses on expanding the key elements to pace up innovation in every area of its business. Strength in the core International business on the success of the segment's Go Lean strategy is also expected to have aided CLX. These positives might have cushioned the quarter to a certain extent.
What the Zacks Model Predicts
Our proven model doesn’t conclusively predict an earnings beat for Clorox this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Clorox Company Price and EPS Surprise
The Clorox Company price-eps-surprise | The Clorox Company Quote
Clorox has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%, making surprise prediction difficult.
Stocks With Favorable Combination
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this season:
Celsius Holdings (CELH - Free Report) currently has an Earnings ESP of +12.50% and a Zacks Rank #3. CELH is expected to register top- and bottom-line growth when it reports the first-quarter 2022 numbers. The Zacks Consensus Estimate for CELH’s quarterly revenues is pegged at $117.6 million, which suggests growth of 135% from the prior-year quarter’s reported figure.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Celsius Holdings’ quarterly earnings has moved a penny up in the past 30 days to 3 cents per share, suggesting a significant improvement from a penny recorded in the year-ago quarter. CELH delivered an earnings beat of 156.3%, on average, in the trailing four quarters.
Corteva (CTVA - Free Report) currently has an Earnings ESP of +0.70% and a Zacks Rank of 3. CTVA is anticipated to register top and bottom-line growth when it reports the first-quarter 2022 results. The Zacks Consensus Estimate for Corteva’s quarterly revenues is pegged at $4.52 billion, indicating an improvement of 8.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Corteva’s bottom line has been unchanged in the past 30 days at 81 cents per share, suggesting growth of 2.5% from the year-ago quarter’s reported figure. CTVA delivered an earnings beat of 21.9%, on average, in the trailing four quarters.
The Estee Lauder Companies (EL - Free Report) currently has an Earnings ESP of +0.98% and is Zacks #3 Ranked. EL is anticipated to register top and bottom-line growth when it reports the third-quarter fiscal 2022 results. The Zacks Consensus Estimate for EL’s quarterly revenues is pegged at $4.32 billion, indicating an improvement of 11.9% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Estee Lauder’s bottom line has moved up 3 cents in the past 30 days to $1.66 per share. The consensus estimate suggests growth of 2.5% from the prior-year quarter’s level. EL delivered an earnings beat of 26.5%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.