Consumer products giant Clorox (NYSE: CLX) will be reporting earnings this Thursday after the bell. Here’s what investors should know.
Clorox beat analysts’ revenue expectations last quarter, reporting revenues of $1.67 billion, flat year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ organic revenue estimates but a significant miss of analysts’ EPS estimates.
Is Clorox a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Clorox’s revenue to be flat year on year, improving from the 8% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Clorox has missed Wall Street’s revenue estimates multiple times 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. Procter & Gamble delivered year-on-year revenue growth of 7.4%, beating analysts’ expectations by 3.6%, and WD-40 reported revenues up 10.7%, topping estimates by 4.7%. Procter & Gamble traded up 1.8% following the results while WD-40 was down 4%.
Read our full analysis of Procter & Gamble’s results here and WD-40’s results here.
There has been positive sentiment among investors in the household products segment, with share prices up 4% on average over the last month. Clorox is down 5.8% during the same time and is heading into earnings with an average analyst price target of $115.47 (compared to the current share price of $96.50).
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