Core Insights - Clorox Company (CLX) is expected to report a decline in both revenue and earnings for the third quarter of fiscal 2025, with revenues estimated at $1.71 billion, a decrease of 5.5% year-over-year, and earnings per share projected at $1.57, down 8.2% from the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate indicates a trailing four-quarter earnings surprise of 23.8% on average, with an 11.5% surprise in the most recent quarter [2]. - Adjusted operating profit is predicted to increase by 8.3% year-over-year to $281.7 million, with an expected operating margin expansion of 180 basis points to 16.1% [6]. Strategic Initiatives - Clorox is leveraging its IGNITE strategy to enhance innovation and profitability across its business segments, particularly in the International segment, which is expected to see organic sales growth of 9% year-over-year [3][4]. - The company is streamlining its operating model to improve efficiency and productivity, which has positively impacted cash flow and adaptability to changing consumer behaviors [5]. Market Conditions - Clorox faces a challenging macroeconomic environment, with consumers experiencing financial pressures and increased advertising expenses impacting profitability [7]. - The company is also contending with stiff competition in the consumer goods sector, which is affecting its market share and operational performance [7]. Valuation and Stock Performance - CLX stock is currently trading at a forward 12-month price-to-earnings ratio of 19.45x, below the industry average of 21.08x, and has underperformed with a 14.8% decline year-to-date compared to the industry's 1.2% decline [9][10].

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Wall Street analysts expect Clorox (CLX) to post quarterly earnings of $1.57 per share in its upcoming report, which indicates a year-over-year decline of 8.2%. Revenues are expected to be $1.71 billion, down 5.5% from the year-ago quarter.The consensus EPS estimate for the quarter has been revised 2.2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Prior to a company's earnings r ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Clorox (CLX) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 5. On the other h ...

Group 1 - Clorox thrived during the pandemic but has struggled to generate growth since then [1]

Core Viewpoint - The Clorox Company (CLX) is experiencing significant challenges, with a stock price decline of 12.1% over the past six months, underperforming compared to the industry and broader consumer staples sector [1][5]. Stock Performance - CLX's stock closed at $139.82, remaining below its 200-day and 50-day simple moving averages (SMAs) of $152.40 and $143.99, respectively, indicating a potential sustained downward trend [3][4]. - Compared to competitors, CLX's performance is weaker, with Colgate-Palmolive and Procter & Gamble experiencing declines of 9.1% and 4.7%, respectively, while Church & Dwight saw a growth of 1.3% [5]. Financial Performance - In Q2 of fiscal 2025, Clorox's revenues and earnings exceeded the Zacks Consensus Estimate, but revenues still declined by 15% year-over-year due to broad-based declines across key business segments [9]. - Revenue declines were reported in Health and Wellness (13%), Household (11%), Lifestyle (16%), and International (12%) segments, primarily due to volume contraction [9]. Future Outlook - Management has provided a cautious outlook for fiscal 2025, projecting net sales growth between -1% and 2%, with gross margin growth expected to be offset by cost inflation and increased trade promotional expenses [10]. - Clorox plans to invest 11-11.5% of net sales in advertising and sales promotion, with selling and administrative expenses forecasted at 15-16% of net sales [10]. Earnings Estimates - The Zacks Consensus Estimate for Clorox's earnings per share (EPS) for fiscal 2025 is stable at $7.15, while the estimate for fiscal 2026 has decreased by 0.6% to $7.08 [11]. Strategic Initiatives - Clorox is implementing its IGNITE strategy to accelerate profitable growth and enhance long-term success, focusing on expanding key business elements and driving innovation [13]. - The company has streamlined its operating model to improve efficiency and profitability, resulting in meaningful improvements in gross margin [14]. - Clorox is investing $560-$580 million in transformative technologies over the next few years, with 70% of these costs tied to ERP implementation [16]. Valuation - Clorox is currently trading at a forward 12-month P/E ratio of 19.71, below the industry average of 20.2 and the S&P 500's average of 20.05 [19]. - The lower valuation may suggest an attractive entry point but could also reflect investor concerns regarding potential underlying challenges within the business [20].

Group 1 - The Clorox Company will release its third-quarter fiscal year 2025 results on May 5, 2025 [1] - The announcement will include a press release and prepared management remarks posted on the company's website at 1:15 p.m. PT / 4:15 p.m. ET [3] - A live Q&A audio webcast for analysts will take place at 2 p.m. PT / 5 p.m. ET with Chair and CEO Linda Rendle and Chief Financial Officer Luc Bellet [3] Group 2 - Clorox is headquartered in Oakland, California, and has been in operation since 1913 [2] - The company integrates ESG into its business reporting and was ranked No. 1 on Barron's 100 Most Sustainable Companies list for the third consecutive year in 2025 [2] - Clorox's trusted brands include Brita®, Burt's Bees®, Clorox®, Fresh Step®, Glad®, Hidden Valley®, Kingsford®, Liquid-Plumr®, and Pine-Sol®, along with international brands such as Clorinda®, Chux®, and Poett® [2]

Core Insights - Hidden Valley Ranch is launching seven new flavors to enhance its product offerings, aiming to elevate meal and snack experiences [1][2] - The brand is introducing a redesigned Easy Squeeze bottle for a mess-free and user-friendly experience [2][6] Product Innovations - New flavors include: - Blue Cheese Ranch - Kickin' Cajun Blackened Ranch - Cilantro Lime Ranch - Cracked Pepper Ranch - Sweet BBQ Ranch - Garlic Ranch Seasoning - Creamy Jalapeno Ranch Seasoning [2][5] - The Kickin' Cajun Blackened Ranch will be available exclusively at Kroger, while Blue Cheese Ranch, Sweet BBQ Ranch, and Cracked Pepper Ranch will be exclusive to Walmart [2] Packaging Redesign - The new Easy Squeeze bottle features: - Improved Flow Control Cap for mess-free pouring - Inverted design to reduce waste and enhance usability [6]

Core Insights - Companies like Sherwin-Williams, McDonald's, and Clorox are recognized for their long-term dividend growth, making them attractive for passive income investors [2][15]. Sherwin-Williams - Sherwin-Williams has been included in the Dow Jones Industrial Average, highlighting its consistent performance and diverse revenue streams [3]. - The company operates through three segments: Paint Stores Group (57% of revenue), Performance Coatings Group (29%), and Consumer Brands Group (14%) [3][5]. - The Paint Stores Group primarily serves the U.S. market, while the Performance Coatings Group focuses on industrial clients [4]. - Sherwin-Williams has a strong operating margin across its segments, with 22% for Paint Stores, 21% for Consumer Brands, and 18% for Performance Coatings [5]. - The company announced its 46th consecutive annual dividend increase, positioning it to become a Dividend King by 2029 [6]. - Despite a high price-to-earnings (P/E) ratio of 33.1 and a low yield of 0.9%, Sherwin-Williams is considered a premium investment due to its industry leadership [7]. McDonald's - McDonald's has shown resilience, with an 8% year-to-date increase in stock price, outperforming major indexes [8]. - The company's business model relies heavily on franchising, with 95% of its restaurants being franchised, providing stable cash flow [9]. - McDonald's has paid a growing dividend for 48 consecutive years, with a manageable payout ratio under 60% and a yield of 2.3% [10]. - Over the past decade, McDonald's stock price has increased by 220%, while the share count has decreased by over 25% due to buybacks [10]. Clorox - Clorox has faced challenges in growth but is undergoing a turnaround that may benefit long-term investors [11]. - The company has a diverse brand portfolio but has struggled with supply chain management and cost control [12]. - Clorox is making investments in digital technologies and transitioning to a cloud-based platform to improve efficiency [13]. - Management projects adjusted earnings per share for fiscal 2025 to be between $6.95 and $7.35, resulting in an adjusted P/E ratio of 20.6 [14]. - Clorox offers a 3.3% dividend yield and has increased its dividend for 40 consecutive years, making it appealing for value investors [14].

Core Viewpoint - Clorox (CLX) is positioned well to continue its trend of beating earnings estimates, with a strong history of performance in recent quarters [1][4]. Earnings Performance - In the most recent quarter, Clorox reported earnings of $1.55 per share, exceeding the expected $1.39 per share, resulting in a surprise of 11.51% [2]. - For the previous quarter, Clorox's earnings were $1.86 per share against an expectation of $1.36 per share, leading to a surprise of 36.76% [2]. Earnings Estimates and Predictions - Recent estimates for Clorox have been increasing, with a positive Earnings ESP (Expected Surprise Prediction) of +1.37%, indicating bullish sentiment among analysts regarding the company's earnings prospects [4][7]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [7]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [5]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6].