Clorox (NYSE:CLX) Posts Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Clorox (NYSE:CLX) released its quarterly earnings results on Thursday. The company reported $1.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.55 by $0.09, FiscalAI reports. The business had revenue of $1.67 billion during the quarter, compared to the consensus estimate of $1.67 billion. Clorox had a return on equity of 379.46% and a net margin of 11.18%.The business’s revenue was up .1% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.45 EPS. Clorox updated its FY 2026 guidance to 5.450-5.650 EPS.

Here are the key takeaways from Clorox’s conference call:

• ERP implementation is complete, service levels have stabilized, and management says this foundation will enable better execution and convert innovation and distribution gains into improved results.
• Q3 results fell short of expectations—gross margin was pressured by higher-than-expected supply-chain/fulfillment costs and delayed cost savings, and several businesses (notably Fresh Step litter and parts of Food) improved more slowly than planned.
• Management reports strong innovation and shelf gains in Cleaning (including Clorox PURE and Scentiva), improving momentum at Glad after price/pack actions, and Hidden Valley share recovery following product and pack changes.
• Near-term cost risk from higher oil/resin prices related to the Middle East conflict is material—management estimates roughly $20–25 million of Q4 headwinds at ~$100/barrel—and expects to use RGM, targeted pricing, productivity and accelerated cost savings to mitigate.
• The GOJO acquisition closed April 1 and adds about $800M of revenue with mid-single-digit growth; company expects year‑1 gross margin dilution and a Q4 inventory step-up one-time hit but forecasts at least $50M of run‑rate synergies and multi-year accretion.

Clorox Trading Down 9.7%

CLX traded down $9.36 during midday trading on Friday, hitting $87.08. The company’s stock had a trading volume of 13,250,607 shares, compared to its average volume of 2,359,509. The company has a current ratio of 0.74, a quick ratio of 0.48 and a debt-to-equity ratio of 71.03. The firm has a market cap of $10.53 billion, a P/E ratio of 14.23, a PEG ratio of 0.48 and a beta of 0.65. The firm has a 50-day moving average price of $108.21 and a two-hundred day moving average price of $108.82. Clorox has a 52-week low of $86.00 and a 52-week high of $140.24.

Clorox Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 8th. Shareholders of record on Wednesday, April 22nd will be issued a $1.24 dividend. The ex-dividend date is Wednesday, April 22nd. This represents a $4.96 annualized dividend and a yield of 5.7%. Clorox’s payout ratio is 81.05%.

Institutional Trading of Clorox

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. grew its holdings in shares of Clorox by 22.1% during the 4th quarter. Invesco Ltd. now owns 4,880,341 shares of the company’s stock worth $492,085,000 after purchasing an additional 884,751 shares during the period. Worldquant Millennium Advisors LLC purchased a new stake in shares of Clorox during the 2nd quarter worth about $71,856,000. Two Sigma Investments LP grew its holdings in shares of Clorox by 33.8% during the 3rd quarter. Two Sigma Investments LP now owns 1,740,175 shares of the company’s stock worth $214,564,000 after purchasing an additional 439,797 shares during the period. Bank of America Corp DE grew its holdings in shares of Clorox by 31.2% during the 3rd quarter. Bank of America Corp DE now owns 1,465,446 shares of the company’s stock worth $180,689,000 after purchasing an additional 348,292 shares during the period. Finally, State Street Corp grew its holdings in shares of Clorox by 3.5% during the 3rd quarter. State Street Corp now owns 8,434,277 shares of the company’s stock worth $1,039,946,000 after purchasing an additional 282,794 shares during the period. Hedge funds and other institutional investors own 78.53% of the company’s stock.

Analyst Ratings Changes

Several research firms have recently issued reports on CLX. BNP Paribas Exane raised Clorox from an “underperform” rating to a “neutral” rating in a research note on Wednesday, February 11th. Morgan Stanley cut their target price on shares of Clorox from $110.00 to $97.00 and set an “equal weight” rating for the company in a research note on Friday. Rothschild & Co Redburn set a $117.00 target price on shares of Clorox in a research note on Friday, February 13th. Barclays set a $85.00 target price on shares of Clorox in a research note on Friday. Finally, Wells Fargo & Company cut their target price on shares of Clorox from $110.00 to $100.00 and set an “equal weight” rating for the company in a research note on Friday. One research analyst has rated the stock with a Buy rating, twelve have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and a consensus target price of $104.93.

Key Clorox News

Here are the key news stories impacting Clorox this week:

• Positive Sentiment: Q3 results beat on the bottom line as cost cuts and lower spending lifted non‑GAAP EPS to $1.64, above estimates, showing operational leverage despite flat sales. Read More.
• Positive Sentiment: Management is emphasizing innovation and strategic moves to drive future growth — a narrative investors may watch if execution improves. Read More.
• Neutral Sentiment: The company provided Q3 filings, an earnings call transcript and a formal press release; these sources contain details on segment trends and cost actions for modeling. Read More. • Read More.
• Negative Sentiment: Clorox trimmed FY‑2026 guidance (EPS and sales), citing weaker demand and market‑share headwinds — management’s guidance was well below consensus, which is the main catalyst for the selloff. Read More.
• Negative Sentiment: Several large brokers cut price targets and shifted to neutral/underweight after the update (Morgan Stanley, Citi, JPMorgan, Wells Fargo), increasing short‑term selling pressure. Read More. • Read More.
• Negative Sentiment: A shareholder law firm announced an investigation into possible securities‑fraud claims related to Clorox’s statements, adding regulatory/legal risk that can weigh on sentiment. Read More.
• Negative Sentiment: Shares hit new 52‑week lows and traded at much higher volumes, signaling broad repositioning by investors and momentum that could continue until clarity on sales/margin recovery arrives. Read More.

Clorox Company Profile

The Clorox Company is a leading manufacturer and marketer of consumer and professional products designed to help people care for their homes and live healthy, sustainable lives. Its portfolio spans cleaning and household products, food and beverages, water filtration systems and cat litter, serving both retail and institutional customers. The company’s flagship bleach and disinfecting products are well known in the United States and many international markets, where they help prevent the spread of germs in homes, hospitals, schools and businesses.

Clorox’s diverse brand lineup includes liquid bleach and surface cleaners, eco-friendly cleaning tools, food preservation and preparation items, charcoal grills and briquettes, specialty foods and beverages, pet care products and personal care lines.