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Clorox (CLX) Q3 Earnings Beat Estimates, Revenues Down Y/Y
Clorox (CLX) Q3 Earnings Beat Estimates, Revenues Down Y/Y
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The Clorox Company CLX reported third-quarter fiscal 2024 results, wherein the bottom line beat the Zacks Consensus Estimate and improved year over year. Significant gains from pricing actions and ongoing cost-saving initiatives aided the performance. Results also benefited from a solid innovation pipeline and digital transformation. CLX has been on track with its streamlined operating model, which aims to improve efficiency.Shares of this currently Zacks Rank #3 (Hold) company have risen 17.1% in the past three months compared with the industry’s 5.8% growth.Q3 UpdateAdjusted earnings of $1.71 per share jumped 13% year over year and beat the Zacks Consensus Estimate of $1.33. Bottom-line results gained from increased margins, and gains from pricing and cost savings, somewhat offset by adverse currency as well as lower volumes and increased manufacturing and logistics costs.Adjusted earnings excluded one-time costs related to the recent cyberattack incident, and ongoing digital capabilities and productivity enhancements of 16 cents and 19 cents, respectively. CLX’s pricing and ongoing cast-saving initiatives contributed to its better-than-expected performance.The Clorox Company Price, Consensus and EPS SurpriseThe Clorox Company price-consensus-eps-surprise-chart | The Clorox Company QuoteOn a GAAP basis, the company reported loss of 41 cents per share, narrower from a loss of $1.71 per share reported a year ago.Net sales of $1.81 billion dipped 5% from the year-ago quarter's level and missed the Zacks Consensus Estimate of $1.88 billion. On an organic basis, sales rose 2% year over year. The downside was mainly due to reduced volumes from temporary distribution losses stemming from the widescale disruptions from the cyberattack along with adverse foreign exchange rates, partly offset by favorable price mix.The gross margin expanded 40 bps year over year to 42.2% in the fiscal third quarter. Gains from pricing and cost-saving initiatives were offset by the impact of adverse currency, and elevated manufacturing and logistics costs. We expect gross decrease of 50-bps for the fiscal third quarter.Segmental DiscussionSales of the Health and Wellness segment dropped 6% to $609 million, which lagged our estimate of $659.9 million. This was due to a fall of 4 points in volume and a two-point from adverse price mix.The Household segment’s sales were down 4% to $5...