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Here's Why Clorox (CLX) is Poised to Top Q1 Earnings Estimates
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The Clorox Company (CLX - Free Report) is likely to register top-line growth when it reports first-quarter fiscal 2023 earnings on Nov 1. The company is likely to register top and bottom-line declines when it reports the quarterly results.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1,685 million, suggesting a decline of 6.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has dropped 4% in the past 30 days to 73 cents per share, indicating a decrease of 39.7% from the figure reported in the prior-year quarter.
The consumer and professional products company has a trailing four-quarter earnings surprise of 9.3%, on average. CLX delivered a negative earnings surprise of 2.1% in the last reported quarter.
Clorox has been on track with the IGNITE strategy, which focuses on the expansion of the key elements under the 2020 Strategy to pace up innovation in each area of business. The company earlier announced a streamlined operating model to be implemented in the first quarter of fiscal 2023, which is likely to have helped it better meet consumer needs, increase efficiency and move decision-making closer to consumers. Also, its cost-saving and pricing actions bode well.
The company has been witnessing strong progress in the core International business as it continues to build on the success of the segment's Go Lean strategy. This is expected to have aided sales in the International segment.
However, Clorox has been reeling under elevated manufacturing and logistic costs, and higher commodity costs. Input cost inflation, including commodities, transportation and wage inflation, has been concerning. Broad-based inflation across the supply chain is expected to have dented the company’s quarterly performance.
What the Zacks Model Unveils
Our proven model conclusively predicts 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 chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Clorox has a Zacks Rank #3 and an Earnings ESP of +6.10%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider, as our model shows that these also have the right combination of elements to deliver an earnings beat.
e.l.f. Beauty (ELF - Free Report) has an Earnings ESP of +7.58% and it currently sports a Zacks Rank of 1. The company is likely to register top-line growth when it reports third-quarter 2022 results. The consensus mark for ELF’s quarterly revenues is pegged at $105.7 million, which suggests 15.1% growth from the figure reported in the prior-year quarter.
The consensus mark for e.l.f. Beauty’s quarterly earnings has moved up by a penny in the past 30 days to 15 cents per share. The consensus estimate for ELF’s third-quarter earnings suggests a decline of 28.6% from the year-ago quarter’s reported figure.
Kellogg's (K - Free Report) currently has an Earnings ESP of +2.27% and a Zacks Rank #3. K is likely to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.8 billion, which suggests growth of 4% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at 96 cents per share, suggesting a decline of 10.1% from the year-ago quarter’s reported number. K has delivered an earnings beat of 13.27%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) currently has an Earnings ESP of +2.02% and a Zacks Rank of 3. The company is expected to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for HSY’s quarterly revenues is pegged at $2.6 billion, which suggests growth of 11% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Hershey’s quarterly earnings has moved up by a penny in the past seven days to $2.07 per share. However, the consensus estimate for HSY suggests a 1.4% decline from the year-ago reported number. HSY has delivered an earnings beat of 8.7%, on average, in the trailing four quarters.
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Here's Why Clorox (CLX) is Poised to Top Q1 Earnings Estimates
The Clorox Company (CLX - Free Report) is likely to register top-line growth when it reports first-quarter fiscal 2023 earnings on Nov 1. The company is likely to register top and bottom-line declines when it reports the quarterly results.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1,685 million, suggesting a decline of 6.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has dropped 4% in the past 30 days to 73 cents per share, indicating a decrease of 39.7% from the figure reported in the prior-year quarter.
The consumer and professional products company has a trailing four-quarter earnings surprise of 9.3%, on average. CLX delivered a negative earnings surprise of 2.1% in the last reported quarter.
The Clorox Company Price and EPS Surprise
The Clorox Company price-eps-surprise | The Clorox Company Quote
Factors to Note
Clorox has been on track with the IGNITE strategy, which focuses on the expansion of the key elements under the 2020 Strategy to pace up innovation in each area of business. The company earlier announced a streamlined operating model to be implemented in the first quarter of fiscal 2023, which is likely to have helped it better meet consumer needs, increase efficiency and move decision-making closer to consumers. Also, its cost-saving and pricing actions bode well.
The company has been witnessing strong progress in the core International business as it continues to build on the success of the segment's Go Lean strategy. This is expected to have aided sales in the International segment.
However, Clorox has been reeling under elevated manufacturing and logistic costs, and higher commodity costs. Input cost inflation, including commodities, transportation and wage inflation, has been concerning. Broad-based inflation across the supply chain is expected to have dented the company’s quarterly performance.
What the Zacks Model Unveils
Our proven model conclusively predicts 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 chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Clorox has a Zacks Rank #3 and an Earnings ESP of +6.10%.
Other Stocks With Favorable Combination
Here are some other companies that you may want to consider, as our model shows that these also have the right combination of elements to deliver an earnings beat.
e.l.f. Beauty (ELF - Free Report) has an Earnings ESP of +7.58% and it currently sports a Zacks Rank of 1. The company is likely to register top-line growth when it reports third-quarter 2022 results. The consensus mark for ELF’s quarterly revenues is pegged at $105.7 million, which suggests 15.1% growth from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus mark for e.l.f. Beauty’s quarterly earnings has moved up by a penny in the past 30 days to 15 cents per share. The consensus estimate for ELF’s third-quarter earnings suggests a decline of 28.6% from the year-ago quarter’s reported figure.
Kellogg's (K - Free Report) currently has an Earnings ESP of +2.27% and a Zacks Rank #3. K is likely to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.8 billion, which suggests growth of 4% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at 96 cents per share, suggesting a decline of 10.1% from the year-ago quarter’s reported number. K has delivered an earnings beat of 13.27%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) currently has an Earnings ESP of +2.02% and a Zacks Rank of 3. The company is expected to register top-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for HSY’s quarterly revenues is pegged at $2.6 billion, which suggests growth of 11% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Hershey’s quarterly earnings has moved up by a penny in the past seven days to $2.07 per share. However, the consensus estimate for HSY suggests a 1.4% decline from the year-ago reported number. HSY has delivered an earnings beat of 8.7%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.