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The Zacks Consensus Estimate for quarterly revenues is pegged at $1.88 billion, suggesting growth of 4.5% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the past seven days to $1.19 per share. The consensus mark indicates growth of 28% from the figure reported in the prior-year quarter.
The consumer and professional products company has a trailing four-quarter earnings surprise of 25.47%, on average. CLX delivered an earnings surprise of 25.83% in the last reported quarter.
Clorox has been gaining from solid demand for its products and brands, digital investments, pricing actions, and focus on cost management. Its IGNITE strategy and digital investments also bode well. This is likely to have aided the top and bottom lines in fourth-quarter fiscal 2023.
Strength in the Health and Wellness, Household and Lifestyle businesses, supported by solid demand for its products, is likely to have aided the company’s top and bottom-line performances in the fiscal fourth quarter. It has been witnessing continued strength in the core International business, as it has been building on the success of the segment's Go Lean strategy.
Driven by CLX’s IGNITE strategy, which aims to improve profitability in the International business, it has been investing selectively in profitable platforms. These efforts are expected to have accelerated profitable growth for the segment in the to-be-reported quarter.
We expect revenues for the company’s Health and Wellness segment to increase 3% year over year in fourth-quarter fiscal 2023, whereas the Household and Lifestyle businesses are predicted to deliver sales growth of 2% each. Our model predicted sales for the International business to improve 1% year over year in the fiscal fourth quarter.
Additionally, Clorox has been taking a proactive approach to addressing persistent cost inflation. By implementing a combination of pricing and cost-saving efforts, the company aims to mitigate the impacts of rising costs and maintain its profitability. This should aid its margins in the to-be-reported quarter. We expect the gross margin to expand 190 bps in the fiscal fourth quarter.
On the last reported quarter’s earnings call, management expected Clorox’s net sales to increase 1-2% for fiscal 2023, whereas organic sales were projected to grow 3-4%. The gross margin was anticipated to expand 250-300 basis points due to pricing, cost-saving and supply-chain-optimization efforts, offsetting cost inflation.
Selling and administrative expenses are estimated to be 16% of net sales, including investments in digital capabilities. Adjusted EPS is anticipated to increase 6-10% to $4.35-$4.50 for fiscal 2023.
However, Clorox has been witnessing the adverse impacts of inflation, and higher manufacturing, logistics and commodity costs. For fiscal 2023, management expected cost inflation of $400 million, including commodities, transportation and wage inflation. It also anticipates broad-based inflation across the entire supply chain. These factors are likely to have hurt the company’s performance in the fiscal fourth quarter.
Moreover, the company has been witnessing rising costs due to investments in digital capabilities and productivity enhancements.
On the last reported quarter’s earnings call, CLX expected selling and administrative expenses for fiscal 2023 to include 1.5 percentage points of impact from its strategic investments in digital capabilities and productivity enhancements. The company anticipates advertising and sales promotion spending to be 10% of sales for fiscal 2023, induced by its commitment to investing in its brand portfolio.
Our model estimates selling and administrative expenses to increase 26.9% year over year in the fourth quarter, while selling and administrative expenses, as a percentage of sales, are likely to expand 330 bps year over year.
What the Zacks Model Unveils
Our proven model does not 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 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 -0.34%.
Stocks Poised to Beat Earnings Estimates
Molson Coors (TAP - Free Report) has an Earnings ESP of +6.15% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.29 billion, which suggests growth of 12.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Molson Coors’ quarterly earnings has moved up 2.5% in the past seven days to $1.59 per share, suggesting growth of 33.6% from the year-ago quarter’s reported number. TAP’s earnings beat the consensus estimate in the trailing four quarters, delivering an earnings surprise of 32.1%, on average.
e.l.f. Beauty, Inc. (ELF - Free Report) has an Earnings ESP of +1.02% and flaunts a Zacks Rank #1 at present. The Zacks Consensus Estimate for its first-quarter fiscal 2024 revenues is pegged at $184.9 million, which suggests growth of 50.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for e.l.f. Beauty’s quarterly earnings has been unchanged in the past 30 days at 58 cents per share, suggesting growth of 48.7% from the year-ago quarter’s reported number. ELF’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 103.3%, on average.
Kellogg's (K - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for its second-quarter 2023 revenues is pegged at $4.6 billion, which suggests growth of 4.7% from the figure reported in the prior-year quarter.
The consensus estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at $1.11 per share, suggesting a decline of 5.9% from the year-ago quarter’s reported number. K’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 9.6%, on average.
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Here's What Awaits Clorox (CLX) When It Reports Q4 Earnings
The Clorox Company (CLX - Free Report) is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2023 earnings on Aug 2.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.88 billion, suggesting growth of 4.5% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has moved up by a penny in the past seven days to $1.19 per share. The consensus mark indicates growth of 28% from the figure reported in the prior-year quarter.
The consumer and professional products company has a trailing four-quarter earnings surprise of 25.47%, on average. CLX delivered an earnings surprise of 25.83% 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 gaining from solid demand for its products and brands, digital investments, pricing actions, and focus on cost management. Its IGNITE strategy and digital investments also bode well. This is likely to have aided the top and bottom lines in fourth-quarter fiscal 2023.
Strength in the Health and Wellness, Household and Lifestyle businesses, supported by solid demand for its products, is likely to have aided the company’s top and bottom-line performances in the fiscal fourth quarter. It has been witnessing continued strength in the core International business, as it has been building on the success of the segment's Go Lean strategy.
Driven by CLX’s IGNITE strategy, which aims to improve profitability in the International business, it has been investing selectively in profitable platforms. These efforts are expected to have accelerated profitable growth for the segment in the to-be-reported quarter.
We expect revenues for the company’s Health and Wellness segment to increase 3% year over year in fourth-quarter fiscal 2023, whereas the Household and Lifestyle businesses are predicted to deliver sales growth of 2% each. Our model predicted sales for the International business to improve 1% year over year in the fiscal fourth quarter.
Additionally, Clorox has been taking a proactive approach to addressing persistent cost inflation. By implementing a combination of pricing and cost-saving efforts, the company aims to mitigate the impacts of rising costs and maintain its profitability. This should aid its margins in the to-be-reported quarter. We expect the gross margin to expand 190 bps in the fiscal fourth quarter.
On the last reported quarter’s earnings call, management expected Clorox’s net sales to increase 1-2% for fiscal 2023, whereas organic sales were projected to grow 3-4%. The gross margin was anticipated to expand 250-300 basis points due to pricing, cost-saving and supply-chain-optimization efforts, offsetting cost inflation.
Selling and administrative expenses are estimated to be 16% of net sales, including investments in digital capabilities. Adjusted EPS is anticipated to increase 6-10% to $4.35-$4.50 for fiscal 2023.
However, Clorox has been witnessing the adverse impacts of inflation, and higher manufacturing, logistics and commodity costs. For fiscal 2023, management expected cost inflation of $400 million, including commodities, transportation and wage inflation. It also anticipates broad-based inflation across the entire supply chain. These factors are likely to have hurt the company’s performance in the fiscal fourth quarter.
Moreover, the company has been witnessing rising costs due to investments in digital capabilities and productivity enhancements.
On the last reported quarter’s earnings call, CLX expected selling and administrative expenses for fiscal 2023 to include 1.5 percentage points of impact from its strategic investments in digital capabilities and productivity enhancements. The company anticipates advertising and sales promotion spending to be 10% of sales for fiscal 2023, induced by its commitment to investing in its brand portfolio.
Our model estimates selling and administrative expenses to increase 26.9% year over year in the fourth quarter, while selling and administrative expenses, as a percentage of sales, are likely to expand 330 bps year over year.
What the Zacks Model Unveils
Our proven model does not 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 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 -0.34%.
Stocks Poised to Beat Earnings Estimates
Molson Coors (TAP - Free Report) has an Earnings ESP of +6.15% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.29 billion, which suggests growth of 12.6% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Molson Coors’ quarterly earnings has moved up 2.5% in the past seven days to $1.59 per share, suggesting growth of 33.6% from the year-ago quarter’s reported number. TAP’s earnings beat the consensus estimate in the trailing four quarters, delivering an earnings surprise of 32.1%, on average.
e.l.f. Beauty, Inc. (ELF - Free Report) has an Earnings ESP of +1.02% and flaunts a Zacks Rank #1 at present. The Zacks Consensus Estimate for its first-quarter fiscal 2024 revenues is pegged at $184.9 million, which suggests growth of 50.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for e.l.f. Beauty’s quarterly earnings has been unchanged in the past 30 days at 58 cents per share, suggesting growth of 48.7% from the year-ago quarter’s reported number. ELF’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 103.3%, on average.
Kellogg's (K - Free Report) has an Earnings ESP of +1.92% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for its second-quarter 2023 revenues is pegged at $4.6 billion, which suggests growth of 4.7% from the figure reported in the prior-year quarter.
The consensus estimate for Kellogg's quarterly earnings has been unchanged in the past 30 days at $1.11 per share, suggesting a decline of 5.9% from the year-ago quarter’s reported number. K’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 9.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.