Consumer products giant Clorox (NYSE: CLX) will be reporting results tomorrow after the bell. Here’s what investors should know.
Clorox beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $1.69 billion, down 15.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ organic revenue and EBITDA 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 decline 4.9% year on year to $1.72 billion, in line with the 5.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.56 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Clorox has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Clorox’s peers in the household products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Colgate-Palmolive’s revenues decreased 3.1% year on year, beating analysts’ expectations by 0.6%, and Procter & Gamble reported a revenue decline of 2.1%, falling short of estimates by 1.9%. Colgate-Palmolive traded down 1.8% following the results while Procter & Gamble was also down 2.8%.
Read our full analysis of Colgate-Palmolive’s results here and Procter & Gamble’s results here.
There has been positive sentiment among investors in the household products segment, with share prices up 3% on average over the last month. Clorox’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $155.95 (compared to the current share price of $139.80).
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