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Clorox's Q1 Earnings Coming Up: Key Insights for Investors

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Key Takeaways

  • CLX's product innovation, pricing strategies and stronger brand investments likely supported sales.
  • CLX's Home Care growth and GOJO likely boosted performance, led by Glad, Hidden Valley and Purell.
  • CLX faced margin pressure from higher commodity, freight and logistics costs, and cautious consumer spending.

The Clorox Company (CLX - Free Report) is set to unveil its first-quarter fiscal 2027  results on Nov. 2, after market close. Investors are eager to see if the company can beat market expectations. The Zacks Consensus Estimate for revenues is pegged at $1.9 billion, implying 31% growth from the prior year.

Meanwhile, the consensus mark for earnings per share has been revised down to 97 cents in the past seven days, suggesting 14.1% growth from the year-ago period. CLX has a trailing four-quarter earnings surprise of 4.6%, on average.

The Clorox Company Price, Consensus and EPS Surprise

The Clorox Company Price, Consensus and EPS Surprise

The Clorox Company price-consensus-eps-surprise-chart | The Clorox Company Quote

Key Factors to Observe for CLX's Q1 Earnings

Clorox first-quarter fiscal 2027 results are likely to benefit from its focus on product innovation, improved price-pack architecture and stronger brand investments. Management has highlighted sequential improvements in consumption trends, market share and distribution. Efforts to strengthen product value, improve promotional effectiveness and enhance merchandising execution are likely to have supported performance.

The company's Home Care business likely sustained market share gains, while improvements in Glad trash bags and Hidden Valley Ranch are likely to have supported quarterly performance. Meanwhile, the acquisition of GOJO, which brought the Purell brand into Clorox's portfolio, is likely to have boosted revenues, supported by healthy performance in the professional hygiene business.

Clorox's efforts to strengthen e-commerce execution and deepen retailer partnerships are likely to have supported its performance. The company’s relatively strong e-commerce position, along with targeted plans to address underpenetrated categories and retail channels, may have supported its digital sales initiatives in the quarter to be reported. Management remains focused on strengthening its online presence through category-specific strategies across retailers.

However, Clorox's quarterly performance might have faced pressure from cautious consumer spending, elevated promotional activity and intense competition, while the cat litter business may have continued to face challenges despite product and pricing improvements. Higher commodity costs, ocean freight, trucking and other logistics expenses, along with continued investments in product superiority, might have pressured margins.

What the Zacks Model Says About CLX’s Q1 Earnings

Our proven model does not conclusively predict an earnings beat for CLX this time. 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. However, that’s not the case here.

CLX has an Earnings ESP of +4.31% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are three companies you may also want to consider, as our model shows that these have the right combination of elements to CLX an earnings beat this season:

BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) has an Earnings ESP of +2.54% and currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for third-quarter fiscal 2026 earnings per share is pegged at 1.22 cents, implying 5.2% year-over-year growth. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for quarterly revenues is pegged at $5.9 billion, which indicates an increase of 11.1% from the figure reported in the prior-year quarter. BJ has a trailing four-quarter earnings surprise of 4.8%, on average.

Colgate-Palmolive Company (CL - Free Report) has an Earnings ESP of +0.01% and currently carries a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter fiscal 2025 earnings per share is pegged at 92 cents, implying 1.1% year-over-year growth.

The Zacks Consensus Estimate for quarterly revenues is pegged at $5.3 billion, which indicates an increase of 3.9% from the figure reported in the prior-year quarter. CL has a trailing four-quarter earnings surprise of 3.2%, on average.

Church & Dwight Co., Inc. (CHD - Free Report) currently has an Earnings ESP of +0.06% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter fiscal 2027 earnings per share is pegged at 90 cents, implying an 11% year-over-year increase.

The Zacks Consensus Estimate for quarterly revenues is pegged at $1.6 billion, which indicates a decline of 0.1% from the figure reported in the prior-year quarter. CHD has a trailing four-quarter earnings surprise of 3.9%, on average.

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