©Reuters. Clorox (CLX) adds 8% on strong performance and guidance
(Updated – February 2, 2024 5:44am EST)
Clorox (NYSE:) stock soared 8% in premarket trading Friday after the consumer products company reported better-than-expected second-quarter results and issued strong guidance.
Clorox's second-quarter earnings per share (EPS) were $2.16, beating the consensus estimate of $1.10. Sales increased 16% year over year to $1.99 billion, exceeding expectations of $1.8 billion.
Organic sales increased 20% compared to the same period last year.
“Our second quarter results reflect the strong execution of our recovery plan from the August cyberattack,” said Linda Lendl, Chairman and CEO.
“We are rebuilding retailer inventories ahead of schedule, enabling a return to merchandising and a recovery in distribution. There is still work to do, but we are continuing to grow sales. “We remain focused on delivering outstanding performance in a still challenging environment to drive revenue and reshape margins.”
Gross margin for the quarter rose 730 basis points to 43.5%, compared to 36.2% in the year-ago period.
Looking forward, Clorox expects full-year 2024 EPS to be in the range of $5.30 to $5.50, well above Wall Street's estimate of $4.63.
“Following a faster-than-expected recovery from the cyber attack, short-term trading calls for CLX are positive, and while we believe the consensus is too low, the long-term price “With the decline, the recovery in the top line is uncertain and will be a long-term one.” Stanley said in the memo.
