NYSE$CLX

Clorox Co · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Clorox reported better-than-expected results in the second quarter of fiscal year 2023, driven by strong execution, brand relevance, and pricing and cost savings efforts. Net sales increased slightly, and adjusted EPS saw a significant rise.

Clorox's Q2 2023 results showed a 1% increase in net sales to $1.72 billion, driven by favorable price mix, with organic sales up 4%. Gross margin improved to 36.2%. Diluted EPS increased 43% to $0.80, and adjusted EPS increased 48% to $0.98. The company is updating its fiscal year 2023 outlook, expecting net sales to be between a 2% decrease to a 1% increase and adjusted EPS to be between $4.05 and $4.30.

  • Net sales increased 1% to $1.72 billion, with organic sales up 4%.
  • Gross margin increased 320 basis points to 36.2%.
  • Diluted EPS increased 43% to $0.80, and adjusted EPS increased 48% to $0.98.
  • The company is updating its fiscal year 2023 outlook, expecting net sales to be between a 2% decrease to a 1% increase and adjusted EPS to be between $4.05 and $4.30.

Headline financials

Total Revenue

$1.72B

Previous: $1.69B+1.4%
EPS (adj)

$0.98

Previous: $0.66+48.5%
Organic Sales Growth

4.0%

Previous: -8.0%+150.0%
Capital Expenditures

-$88M

Previous: -$109M+19.3%
Free Cash Flow

$11M

Previous: -$40M+127.5%
Net Income

$99M

Previous: $69M+43.5%
Operating Income

$301M

Previous: $283M+6.4%
Gross Profit

$620M

Previous: $558M+11.1%
Cash & Equivalents

$168M

Previous: $192M-12.5%
Total Assets

$6.05B

Previous: $6.19B-2.3%
Stock-Based Comp

$21M

Previous: $16M+31.3%

Revenue & EPS history

Clorox · Revenue · Quarterly

$1.72B

Q2 2023+1.4%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Clorox · $1.08B total across 3 segments · Q2 2023

  • Household
    $462M+9.2%
  • Lifestyle
    $332M+2.5%
  • International
    $286M-3.4%

Forward guidance

The company is updating the following elements of its fiscal year 2023 outlook: Net sales are now expected to be between a 2% decrease to a 1% increase (organic sales from flat to a 3% increase). Diluted EPS is now expected to be between $3.20 and $3.45, or a 14% to 8% decrease, respectively. Adjusted EPS is now expected to be between $4.05 and $4.30, or a 1% decrease to a 5% increase, respectively.

Tailwinds

  • Net sales are now expected to be between a 2% decrease to a 1% increase (organic sales from flat to a 3% increase).
  • Diluted EPS is now expected to be between $3.20 and $3.45, or a 14% to 8% decrease, respectively.
  • Adjusted EPS is now expected to be between $4.05 and $4.30, or a 1% decrease to a 5% increase, respectively.
  • Foreign exchange headwinds continue to represent about a 2-point reduction in sales.
  • Gross margin increase of about 200 basis points, primarily due to the combined benefit of pricing, cost savings and supply chain optimization, more than offsetting continued cost inflation.

Headwinds

  • Net sales are now expected to be between a 2% decrease to a 1% increase
  • Diluted EPS is now expected to be between $3.20 and $3.45, or a 14% to 8% decrease, respectively.
  • Adjusted EPS is now expected to be between $4.05 and $4.30, or a 1% decrease to a 5% increase, respectively.
  • Foreign exchange headwinds continue to represent about a 2-point reduction in sales.
  • Continued cost inflation.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.0%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+1.0%

Avg return

30 days after

55%

39 / 71 earnings

Positive

+9.5%

Q4 2023

Best reaction

-15.3%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.5%-6.7%-6.6%
Q2 2026+4.6%+4.0%-0.3%
Q1 2026+1.1%-1.6%-3.7%
Q3 2025-2.4%-2.6%-8.0%
Q2 2025-7.2%-7.1%-7.1%
Q1 2025+1.1%+3.6%+6.6%
Q4 2024+9.2%+8.6%+20.0%
Q3 2024-6.2%-7.2%-13.4%
Q2 2024+7.6%+6.6%+4.7%
Q1 2024+4.5%+9.6%+22.2%
Q4 2023+9.5%+7.9%+2.3%
Q3 2023+5.1%+1.5%-5.1%
Q2 2023+7.2%+5.0%+7.9%
Q1 2023-5.7%-3.7%+2.6%
Q4 2022-4.2%+0.5%-0.7%
Q3 2022+2.9%+7.3%-1.9%
Q2 2022-15.3%-14.2%-13.3%
Q1 2022+1.5%+0.2%+1.7%
Q4 2021-8.6%-10.3%-6.2%
Q3 2021-2.9%-1.0%-5.0%
Q2 2021-6.5%-8.4%-9.9%
Q1 2021+2.4%+5.2%-2.7%
Q4 2020+0.5%+0.4%-5.4%
Q3 2020+6.9%+7.2%+10.6%
Q2 2020+6.1%+6.7%+12.8%
Q1 2020-2.5%-2.0%-1.7%
Q4 2019-3.5%-5.1%-2.7%
Q3 2019-6.9%-7.2%-6.8%
Q2 2019+1.9%+3.9%+4.7%
Q1 2019+0.6%+2.7%+8.4%
Q4 2018+6.6%+5.5%+8.1%
Q3 2018+1.4%+3.4%+3.1%
Q2 2018-9.5%-8.9%-6.7%
Q1 2018+2.2%+0.9%+10.4%
Q4 2017+1.9%+2.0%+4.6%
Q3 2017+1.7%+1.4%+5.0%
Q2 2017+2.9%+5.7%+13.9%
Q1 2017-4.0%-4.4%-4.6%
Q4 2016+2.8%+1.4%+1.3%
Q3 2016+1.8%
Q2 2016-5.1%
Q1 2016+2.2%
Q4 2015+4.4%
Q3 2015+0.4%
Q2 2015+0.3%
Q1 2015+1.2%
Q4 2014-0.6%
Q3 2014-1.2%
Q2 2014-2.1%
Q1 2014-0.6%
Q4 2013-0.7%
Q3 2013-0.5%
Q2 2013+1.0%
Q1 2013+1.0%
Q4 2012-0.6%
Q3 2012-4.3%
Q2 2012+1.0%
Q1 2012-2.9%
Q4 2011+4.1%
Q3 2011+1.4%
Q2 2011+1.3%
Q1 2011-2.2%
Q4 2010+0.4%
Q4 2008+0.4%
Q3 2010-1.5%
Q3 2009-1.5%
Q2 2010-0.1%
Q2 2009-0.1%
Q1 2009-0.9%
Q4 2009-0.9%
Q1 2010-0.9%

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