OAKLAND - The Clorox Company (NYSE: NYSE:CLX) today announced its financial results for the third quarter of fiscal year 2024, which ended on March 31, 2024. The company reported a notable increase in adjusted earnings per share (EPS), surpassing analyst expectations, despite a decrease in net sales compared to the same period last year.
For the third quarter, Clorox achieved an adjusted EPS of $1.71, which was $0.35 higher than the analyst estimate of $1.36. However, revenue declined 5% to $1.81 billion, falling short of the consensus estimate of $1.87 billion.
This decrease was attributed to lower volume from temporary distribution losses due to a cyberattack and unfavorable foreign exchange rates, although organic sales saw a 2% increase.
The company's gross margin improved slightly, rising to 42.2% from 41.8% in the year-ago quarter, largely due to beneficial pricing and cost savings, which were partly offset by increased manufacturing and logistics costs, as well as higher trade promotion spending.
Clorox also faced a decline in year-to-date net cash provided by operations, which dropped by 51% to $355 million compared to $728 million in the previous year.
Chair and CEO Linda Rendle commented on the quarter's performance, stating, "During the quarter, we made significant progress on our long-term strategies to drive profitable growth while also continuing to recover from the cyberattack."
She added, "We are on track to exit fiscal year 2024 with strong fundamentals and the right investments and plans in place to deliver against our strategic and financial objectives to enhance long-term shareholder value."
Looking ahead, Clorox has adjusted its fiscal year 2024 outlook, now expecting net sales to be at the lower end of the previously forecasted low single-digit decline, primarily due to the divestiture of its Argentina business and third-quarter results.
The company anticipates a gross margin increase of about 275 basis points and has set its adjusted EPS guidance for the fiscal year between $5.80 and $5.95, above the analyst consensus of $5.58.
Despite the mixed results, Clorox has made strides in recovering from the cyberattack, with nearly 90% of the related market share losses now recouped. The company also continues to evolve its portfolio, as demonstrated by the divestiture of the Argentina business, and remains focused on its IGNITE strategy to enhance digital capabilities and productivity.
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