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Here's How Clorox (CLX) is Placed Just Ahead of Q2 Earnings
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The Clorox Company (CLX - Free Report) is likely to register top and bottom-line growth when it reports second-quarter fiscal 2024 earnings on Feb 1. The company has been well-poised on a solid innovation pipeline, digital transformation, and pricing and cost-saving initiatives.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.78 billion, suggesting growth of 3.6% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days at $1.07 per share. The consensus mark indicates 9.2% growth from earnings of 98 cents reported in the prior-year quarter.
The consumer and professional products company has a trailing four-quarter earnings surprise of 115.5%, on average. CLX delivered a significant earnings surprise of 345% in the last reported quarter.
Clorox has been benefiting from solid demand, cost-saving efforts, strong execution and pricing actions. Also, its IGNITE strategy and digital investments bode well. CLX has been on track with its streamlined operating model, which has been aiming to improve efficiency. This is likely to have aided the top and bottom lines in second-quarter fiscal 2024.
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 second quarter. The company 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.
We anticipate organic sales to increase 4.6% in the fiscal second quarter, backed by a 12.5% rise in the price/mix, offset by a 7.9% decline in volume.
Clorox has been gaining from pricing and cost-saving initiatives. The company’s streamlined operating model has been boosting efficiency and, in turn, margins. The streamlined operating model is expected to enhance the company's ability to respond quickly to changing consumer behaviors, innovate faster and increase future cash flow because of cost savings that will be generated primarily in the areas of selling and administration, supply chain, marketing, and research and development. Gains from these enhancements are expected to get reflected in the company’s gross margin in the to-be-reported quarter.
Our estimate for the company’s gross margin is pegged at 37% for the fiscal second quarter, indicating an increase of 80 basis points (bps) from the year-ago quarter’s actual.
However, Clorox has been witnessing the adverse impacts of inflation, and higher manufacturing, logistics and commodity costs. The company has been witnessing rising costs due to investments in digital capabilities and productivity enhancements.
Additionally, Clorox’s fiscal second-quarter results are expected to reflect the continued impacts of the recent cyber security attack.
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 +9.75%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies that also have the right combination of elements to post an earnings beat:
Colgate-Palmolive (CL - Free Report) currently has an Earnings ESP of +0.69% and a Zacks Rank #2. CL is anticipated to register top and bottom-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for Colgate’s quarterly revenues is pegged at $4.9 billion, indicating an increase of 5.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Colgate’s bottom line has been unchanged in the past 30 days at 85 cents per share. The consensus estimate for earnings suggests a rise of 10.4% from the prior-year quarter’s reported figure. CL has delivered an earnings beat of 3.6%, on average, in the trailing four quarters.
Coca-Cola (KO - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for KO’s quarterly revenues is pegged at $10.6 billion, suggesting a rise of 4.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly EPS is pegged at 48 cents, which indicates a 6.7% decline from the year-ago reported figure. KO has a trailing four-quarter earnings surprise of 5.1%, on average.
Mondelez International (MDLZ - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #3 at present. The company is expected to register top and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $9.3 billion, which suggests growth of 6.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Mondelez’s quarterly earnings has moved up by a penny in the past 30 days to 77 cents per share. The consensus estimate for earnings suggests an improvement of 5.5% from the year-ago quarter’s reported figure. MDLZ has delivered an earnings surprise of 7.3%, on average, in the trailing four quarters.
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Here's How Clorox (CLX) is Placed Just Ahead of Q2 Earnings
The Clorox Company (CLX - Free Report) is likely to register top and bottom-line growth when it reports second-quarter fiscal 2024 earnings on Feb 1. The company has been well-poised on a solid innovation pipeline, digital transformation, and pricing and cost-saving initiatives.
The Zacks Consensus Estimate for quarterly revenues is pegged at $1.78 billion, suggesting growth of 3.6% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly earnings has been unchanged in the past 30 days at $1.07 per share. The consensus mark indicates 9.2% growth from earnings of 98 cents reported in the prior-year quarter.
The consumer and professional products company has a trailing four-quarter earnings surprise of 115.5%, on average. CLX delivered a significant earnings surprise of 345% 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 benefiting from solid demand, cost-saving efforts, strong execution and pricing actions. Also, its IGNITE strategy and digital investments bode well. CLX has been on track with its streamlined operating model, which has been aiming to improve efficiency. This is likely to have aided the top and bottom lines in second-quarter fiscal 2024.
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 second quarter. The company 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.
We anticipate organic sales to increase 4.6% in the fiscal second quarter, backed by a 12.5% rise in the price/mix, offset by a 7.9% decline in volume.
Clorox has been gaining from pricing and cost-saving initiatives. The company’s streamlined operating model has been boosting efficiency and, in turn, margins. The streamlined operating model is expected to enhance the company's ability to respond quickly to changing consumer behaviors, innovate faster and increase future cash flow because of cost savings that will be generated primarily in the areas of selling and administration, supply chain, marketing, and research and development. Gains from these enhancements are expected to get reflected in the company’s gross margin in the to-be-reported quarter.
Our estimate for the company’s gross margin is pegged at 37% for the fiscal second quarter, indicating an increase of 80 basis points (bps) from the year-ago quarter’s actual.
However, Clorox has been witnessing the adverse impacts of inflation, and higher manufacturing, logistics and commodity costs. The company has been witnessing rising costs due to investments in digital capabilities and productivity enhancements.
Additionally, Clorox’s fiscal second-quarter results are expected to reflect the continued impacts of the recent cyber security attack.
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 +9.75%.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies that also have the right combination of elements to post an earnings beat:
Colgate-Palmolive (CL - Free Report) currently has an Earnings ESP of +0.69% and a Zacks Rank #2. CL is anticipated to register top and bottom-line growth when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for Colgate’s quarterly revenues is pegged at $4.9 billion, indicating an increase of 5.7% 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 Colgate’s bottom line has been unchanged in the past 30 days at 85 cents per share. The consensus estimate for earnings suggests a rise of 10.4% from the prior-year quarter’s reported figure. CL has delivered an earnings beat of 3.6%, on average, in the trailing four quarters.
Coca-Cola (KO - Free Report) currently has an Earnings ESP of +1.00% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for KO’s quarterly revenues is pegged at $10.6 billion, suggesting a rise of 4.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Coca-Cola’s quarterly EPS is pegged at 48 cents, which indicates a 6.7% decline from the year-ago reported figure. KO has a trailing four-quarter earnings surprise of 5.1%, on average.
Mondelez International (MDLZ - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #3 at present. The company is expected to register top and bottom-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $9.3 billion, which suggests growth of 6.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Mondelez’s quarterly earnings has moved up by a penny in the past 30 days to 77 cents per share. The consensus estimate for earnings suggests an improvement of 5.5% from the year-ago quarter’s reported figure. MDLZ has delivered an earnings surprise of 7.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.