Clorox Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Clorox (NYS: CLX) reported earnings on Feb. 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Clorox beat slightly on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.

Gross margins contracted, operating margins grew, and net margins grew.

Revenue details
Clorox booked revenue of $1.22 billion. The 11 analysts polled by S&P Capital IQ predicted revenue of $1.20 billion. Sales were 3.6% higher than the prior-year quarter's $1.18 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.79. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.69 per share. GAAP EPS of $0.79 for Q2 were 394% higher than the prior-year quarter's $0.16 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 41.5%, 20 basis points worse than the prior-year quarter. Operating margin was 14.7%, 50 basis points better than the prior-year quarter. Net margin was 8.6%, 680 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.33 billion. On the bottom line, the average EPS estimate is $1.03.

Next year's average estimate for revenue is $5.36 billion. The average EPS estimate is $4.06.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 815 members rating the stock outperform, and 39 members rating it underperform. Among 282 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 276 give Clorox a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clorox is hold, with an average price target of $68.15.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Clorox. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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