Clorox, the renowned manufacturer of its iconic bleach brand and Pine-Sol, is set to release its earnings report for the fiscal fourth quarter on Wednesday. Here are the key details you need to know about this upcoming announcement.
Profit Outlook
According to FactSet, Clorox is projected to announce a profit of $132 million, equivalent to $1.05 per share. This marks a significant increase from the $101 million, or 81 cents per share, reported during the same quarter last year.
Adjusted Earnings
Experts anticipate that Clorox will report adjusted earnings of $1.17 per share, excluding any one-time items. This predicted figure has been obtained from FactSet.
Strong Revenue Growth
Clorox is expected to showcase impressive revenue growth in comparison to the previous year. Analysts predict that sales will surge from $1.8 billion to $1.88 billion for the year-ago period.
Areas of Focus
1. Pricing Strategy
Clorox, like many other household goods manufacturers, has been implementing price increases to combat persistent cost inflation. In the previous quarter, the company highlighted that higher prices played a role in its decision to raise its gross margin guidance for the year. Investors will be keen to see how successful Clorox’s pricing strategy has been amidst tighter consumer discretionary spending.
2. Addressing Costs
The last quarterly update from Clorox revealed that elevated commodity costs were negatively impacting the company’s margins and earnings. Additionally, increased manufacturing and logistics expenses were also contributing to a decline in Clorox’s profitability. CEO Linda Rendle assured investors that a wide range of measures were being taken to combat cost inflation. Now, shareholders are eagerly awaiting to see if these cost headwinds have subsided.
