NYSE$CLX

Clorox Co · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Clorox's Q4 2021 earnings were impacted by sales decrease across most segments and gross margin decline due to higher costs.

Clorox reported a decrease in sales and diluted net earnings per share for the fourth quarter. Sales were down 9%, and diluted EPS decreased by 68%. The company faced challenges including decelerating shipments from peak pandemic levels, unfavorable price mix, and increased costs.

  • Sales decreased by 9% due to lower shipments and unfavorable price mix.
  • Diluted EPS decreased by 68% due to lower sales and increased costs.
  • Gross margin decreased significantly due to higher manufacturing, logistics, and commodity costs.
  • The company is focused on operational execution, margin rebuilding, and market share improvements for fiscal year 2022.

Headline financials

Total Revenue

$1.8B

Previous: $1.98B-9.1%
EPS (adj)

$0.95

Previous: $2.41-60.6%
Organic Sales Growth

-10.0%

Previous: 24.0%-141.7%
Capital Expenditures

$99M

Previous: $96M+3.1%
Free Cash Flow

$284M

Previous: $644M-55.9%
Net Income

$97M

Previous: $310M-68.7%
Operating Income

$183M

Previous: $241M-23.9%
Gross Profit

$671M

Previous: $46.80+1432692207.7%
Cash & Equivalents

$319M

Previous: $871M-63.4%
Total Assets

$6.33B

Previous: $6.21B+1.9%
Stock-Based Comp

-$2M

Previous: $13M-115.4%

Revenue & EPS history

Clorox · Revenue · Quarterly

$1.8B

Q4 2021-9.1%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Clorox · $1.06B total across 3 segments · Q4 2021

  • Household
    $483M+4730.0%
  • Lifestyle
    $340M+3300.0%
  • International
    $239M+2290.0%

Forward guidance

Clorox projects fiscal year 2022 sales to be down 2% to 6% and diluted EPS to be between $5.05 and $5.35. Adjusted EPS is projected to be between $5.40 and $5.70.

Tailwinds

  • Sequential improvement in gross margin is expected over the course of the fiscal year.
  • Cost inflation is expected to moderate.
  • Mitigating actions are expected to flow through results.
  • The company is committed to investing behind its brands.
  • The company is making key multiyear investments to accelerate digital transformation.

Headwinds

  • Fiscal year sales are projected to be down 2% to 6%.
  • Gross margin for the fiscal year is expected to be down 300 to 400 basis points.
  • Higher commodity costs and manufacturing and logistics costs are expected.
  • Consumer demand remains uncertain.
  • The company expects lower sales in the first half.

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 Q4 2021

Historical avgQ4 2021

+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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