NYSE$CLX

Clorox Co · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Clorox's Q2 2024 earnings reflected a strong recovery from the cyberattack, with net sales increasing and gross margin expanding.

Clorox reported a 16% increase in net sales to $1.99 billion, driven by higher volume as the company rebuilt customer inventories following the August cyberattack and favorable price mix. Gross margin increased by 730 basis points to 43.5%. Diluted EPS decreased by 6% to $0.75, while adjusted EPS increased by 120% to $2.16.

  • Net sales increased by 16% to $1.99 billion, with organic sales up by 20%.
  • Gross margin increased by 730 basis points to 43.5% due to pricing and cost-savings initiatives.
  • Diluted EPS decreased by 6% to $0.75, including charges related to pension plan settlement, digital investments, and the cyberattack.
  • Adjusted EPS increased by 120% to $2.16, driven by higher net sales and gross margin expansion.

Headline financials

Total Revenue

$1.99B

Previous: $1.72B+16.0%
EPS

$0.75

Previous: $0.98-23.5%
Organic Sales Growth

20.0%

Previous: 4.0%+400.0%
Capital Expenditures

-$76M

Previous: -$88M+13.6%
Free Cash Flow

$17M

Previous: $11M+54.5%
Net Income

$93M

Previous: $99M-6.1%
Operating Income

$500M

Previous: $301M+66.1%
Gross Profit

$866M

Previous: $620M+39.7%
Cash & Equivalents

$355M

Previous: $168M+111.3%
Total Assets

$5.91B

Previous: $6.05B-2.3%
R&D Expense

$32M

No prior period
Stock-Based Comp

$16M

Previous: $21M-23.8%

Revenue & EPS history

Clorox · Revenue · Quarterly

$1.99B

Q2 2024+16%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Clorox · $824M total across 3 segments · Q1 2024

  • Household
    $325M-23.2%
  • International
    $270M-5.3%
  • Lifestyle
    $229M-28.4%

Forward guidance

The company updated its fiscal year 2024 outlook, expecting net sales to be down low single digits and gross margin to be up about 200 basis points. Diluted EPS is now expected to be between $3.06 and $3.26, while adjusted EPS is expected to be between $5.30 and $5.50.

Tailwinds

  • Progress made in the second quarter reflected in updated net sales outlook.
  • Raise in expectations for the second half of the fiscal year.
  • Gross margin expected to be up about 200 basis points.
  • Benefit of pricing actions, cost savings and supply chain optimization.
  • Effective tax rate is now expected to be between 22% and 23%.

Headwinds

  • Net sales are expected to be down low single digits.
  • 5 points of unfavorable foreign exchange rates primarily due to the devaluation of the Argentine Peso.
  • Supply chain inflation.
  • Impact from the cyberattack.
  • Selling and administrative expenses are now expected to be between 16% to 17% of net sales, including about 2.5 points of impact related to investments.

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 2024

Historical avgQ2 2024

+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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