NYSE$CLX

Clorox Co · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported flat net sales, increased diluted EPS, and provided FY23 outlook.

Clorox reported flat net sales of $1.8 billion for Q4 2022, with organic sales up 1%. Diluted EPS increased by 4% to $0.81, while adjusted EPS decreased by 2% to $0.93. The company announced a streamlined operating model expected to generate $75 million to $100 million in annual savings.

  • Net sales of $1.8 billion were flat, with a 1% increase in organic sales.
  • Gross margin was flat at 37.1% due to elevated costs, offset by pricing and cost savings.
  • Diluted EPS increased 4% to $0.81, while adjusted EPS decreased 2% to $0.93.
  • Announced a streamlined operating model to improve efficiency and decision-making.

Headline financials

Total Revenue

$1.8B

Previous: $1.8B-0.1%
EPS (adj)

$0.93

Previous: $0.95-2.1%
Organic Sales Growth

1.0%

Previous: -10.0%+110.0%
Capital Expenditures

$79M

Previous: $99M-20.2%
Free Cash Flow

$256M

Previous: $284M-9.9%
Net Income

$104M

Previous: $97M+7.2%
Operating Income

$129M

Previous: $183M-29.7%
Gross Profit

$668M

Previous: $671M-0.4%
Cash & Equivalents

$183M

Previous: $319M-42.6%
Total Assets

$6.16B

Previous: $6.33B-2.8%
Stock-Based Comp

$8M

Previous: -$2M+500.0%

Revenue & EPS history

Clorox · Revenue · Quarterly

$1.8B

Q4 2022-0.1%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Clorox · $1.17B total across 3 segments · Q4 2022

  • Household
    $580M+20.1%
  • International
    $294M+23.0%
  • Lifestyle
    $292M-14.1%

Forward guidance

Clorox expects net sales to be down 4% to up 2% and organic sales to be down 3% to up 3% for fiscal year 2023. Gross margin is expected to increase by about 200 basis points.

Tailwinds

  • Gross margin is expected to increase by about 200 basis points due to pricing, cost savings, and supply chain optimization.
  • Cost savings from streamlined operating model.
  • Commitment to invest behind brands.
  • Supply chain optimization.
  • Benefits beginning in fiscal year 2023.

Headwinds

  • Net sales are expected to be down 4% to up 2%.
  • Organic sales are expected to be down 3% to up 3%.
  • Continued cost inflation.
  • Normalization of demand in cleaning and disinfecting portfolio.
  • Consumer behaviors adapting to ongoing 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 Q4 2022

Historical avgQ4 2022

+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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