NYSE$CLX

Clorox Co · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Clorox reported strong results driven by broad-based consumption across its portfolio.

Clorox reported a 12% increase in net sales to $2.0 billion, driven by favorable price mix. Diluted EPS increased by 75% to $1.42, and adjusted EPS increased by 80% to $1.67. The company delivered double-digit organic net sales growth in all reportable segments and achieved sequential quarterly improvement in gross margin.

  • Net sales increased 12% to $2.0 billion.
  • Organic sales were up 14%.
  • Diluted EPS increased 75% to $1.42.
  • Adjusted EPS increased 80% to $1.67.

Headline financials

Total Revenue

$2.02B

Previous: $1.8B+12.1%
EPS (adj)

$1.67

Previous: $0.93+79.6%
Organic Sales Growth

14.0%

Previous: 1.0%+1300.0%
Capital Expenditures

$84M

Previous: $79M+6.3%
Free Cash Flow

$346M

Previous: $256M+35.2%
Net Income

$181M

Previous: $104M+74.0%
Operating Income

$237M

Previous: $129M+83.7%
Gross Profit

$862M

Previous: $668M+29.0%
Cash & Equivalents

$367M

Previous: $183M+100.5%
Total Assets

$5.95B

Previous: $6.16B-3.5%
Stock-Based Comp

$13M

Previous: $8M+62.5%

Revenue & EPS history

Clorox · Revenue · Quarterly

$2.02B

Q4 2023+12.1%vs Q4 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Clorox · $1.3B total across 3 segments · Q4 2023

  • Household
    $663M+14.3%
  • Lifestyle
    $333M+14.0%
  • International
    $305M+3.7%

Forward guidance

Net sales are expected to be flat to up 2% compared to the prior year. Organic sales are expected to be up 2% to up 4%. Diluted EPS is expected to be between $4.65 and $4.95, or an increase between 290% and 316%, respectively, primarily due to the impact of the noncash impairment charge in the VMS business in fiscal year 2023. Adjusted EPS is expected to be between $5.60 and $5.90, or an increase between 10% and 16%, respectively.

Tailwinds

  • Gross margin is expected to increase by about 150 to 175 basis points, primarily due to the combined benefit of pricing, cost savings and supply chain optimization, offset by continued cost inflation.
  • Advertising and sales promotion spending is expected to be about 11% of net sales, reflecting the company's ongoing commitment to invest behind its brands.

Headwinds

  • Net sales are expected to be flat to up 2% compared to the prior year.
  • Organic sales are expected to be up 2% to up 4%.
  • Selling and administrative expenses are expected to be between 15% and 16% of net sales, which includes about 1.5 points of impact from the company's strategic investments in digital capabilities and productivity enhancements.

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 2023

Historical avgQ4 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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