U.S.-based The Clorox Company (CLX) raised its FY25 sales and earnings guidance after posting stronger-than-expected quarterly results. The company now expects its net sales to grow by up to 2% year-over-year in FY25, improving from its earlier forecast of flat growth or a decline of up to 2%. Clorox also lifted its full-year earnings outlook to $6.95–$7.35 per share, up from its prior range of $6.65–$6.90.
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Despite favorable numbers, CLX stock fell over 2% in after-hours trading. This reflected the company’s concerns about potential risks, including inflation and tariffs, which could impact its supply chain.
Clorox Reports Strong Quarter Performance
In the second quarter, Clorox reported net sales of $1.69 billion, surpassing analysts’ estimates of $1.63 billion. The household consumer products company reported adjusted earnings of $1.55 per share, beating analyst estimates of $1.41 per share. However, net sales dropped 15% year-over-year, mainly due to inventory restoration after the August 2023 cyberattack and the divestiture of its VMS and Argentina businesses.
Moving ahead, the higher profit expectations are driven by cost-saving measures, alongside a focus on innovation to boost demand for its household cleaning products. Clorox has also sold off underperforming businesses and increased its investment in advertising and promotions.
Clorox to Acquire P&G’s Stake as Glad Joint Venture Winds Down
In addition to its results, Clorox agreed to dissolve its joint venture for Glad bags and wraps with Procter & Gamble (PG). The partnership will officially end on January 31, 2026, at which point Clorox plans to purchase P&G’s 20% stake in the venture. Moreover, the company plans to maintain its licensing agreement with P&G for the Febreze and Gain trademarks.
Is Clorox a good stock to buy?
According to TipRanks, CLX stock has received a Hold consensus rating based on seven Holds, one Buy, and one Sell recommendation. The average price target for Clorox is $164.11, suggesting an upside of nearly 3% from its current price.
