Consumer products giant Clorox (NYSE:CLX) will be announcing earnings results this Thursday after market hours. Here’s what investors should know.
Clorox missed analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $1.67 billion, down 8% year on year. It was a softer quarter for the company, with a miss of analysts’ adjusted operating income estimates and a miss of analysts’ organic revenue estimates.
Is Clorox a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Clorox’s revenue to grow 1.2% year on year to $1.93 billion, a reversal from the 5.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.21 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 5 downward revisions over the last 30 days (we track 9 analysts). Clorox has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Clorox’s peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Procter & Gamble delivered year-on-year revenue growth of 1.7%, meeting analysts’ expectations, and WD-40 reported revenues up 1.2%, falling short of estimates by 2.3%. WD-40’s stock price was unchanged following the results.
Read our full analysis of Procter & Gamble’s results here and WD-40’s results here.
There has been positive sentiment among investors in the consumer staples segment, with share prices up 3.6% on average over the last month. Clorox is up 5.8% during the same time and is heading into earnings with an average analyst price target of $139.83 (compared to the current share price of $127.04).
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