Clorox Earnings: Here’s Why Investors are Not Happy Now
Clorox Corporation (NYSE:CLX) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.57%.
Clorox Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 1.96% to $1 in the quarter versus EPS of $1.02 in the year-earlier quarter.
Revenue: Rose 0.86% to $1.41 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Clorox Corporation reported adjusted EPS income of $1 per share. By that measure, the company missed the mean analyst estimate of $1.06. It missed the average revenue estimate of $1.44 billion.
Quoting Management: “We grew sales 1 percent on top of strong 7 percent sales growth in the year-ago quarter,” said Chairman and CEO Don Knauss. “In addition to a challenging year-over-year comparison, the U.S. had the coldest March weather in more than 10 years, which led to double-digit volume and sales declines in our Charcoal business. In addition, declining currencies in Argentina and Venezuela also affected our sales results. Excluding the impact of these headwinds, total company sales grew 3 percent, with solid increases in most of our U.S. businesses and growth in most of our International business.”
Key Stats (on next page)…
Revenue increased 6.64% from $1.33 billion in the previous quarter. EPS increased 7.53% from $0.93 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.4 to a profit $1.35. For the current year, the average estimate has moved up from a profit of $4.31 to a profit of $4.34 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)