Shares of Clorox Co. dropped significantly in premarket trading on Monday, reaching a 7 1/2-month low, following the company’s announcement of a cybersecurity attack that occurred last month. Clorox expects this incident to have a “material” impact on its fiscal first-quarter results.
Evaluating the Financial and Business Impact
Clorox is currently assessing the extent of the damage caused by the cybersecurity attack. The company stated that it is still premature to determine the longer-term impact, including the fiscal year outlook, as they are in the process of recovering from the breach.
Lower Rate of Order Processing
The attack damaged parts of Clorox’s information-technology infrastructure, resulting in significant disruption to its operations. Consequently, the company is currently operating at a reduced rate of order processing. However, Clorox expects automated order processing to return to normal by the week of September 25th. The ramp-up to full production will occur gradually over time.
Stock Performance and Outlook
Clorox stock is anticipated to open at the lowest price seen since February 2nd. Over the past three months, the stock has experienced a 6.6% decrease, while the S&P 500 has seen a modest 0.9% gain.
Stay tuned for further updates on Clorox Co.’s recovery process and its impact on fiscal performance.
