Please ensure Javascript is enabled for purposes of website accessibility

Why The Clorox Company Stock Jumped 10.1% in November

By Steve Symington - Dec 5, 2017 at 9:30AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The consumer products leader rose after an encouraging quarter. Here's what investors need to know.

What happened

Shares of The Clorox Company (CLX 2.07%) rose 10.1% in November, according to data from S&P Global Market Intelligence, after the consumer products specialist announced solid quarterly results in spite of the impact of this year's hurricanes.

More specifically, Clorox's fiscal first-quarter revenue climbed a modest 4% year over year, to $1.5 billion. That translated to 7% growth in net earnings to $192 million, or $1.46 per diluted share, which was comfortably ahead of the $1.42 per share Wall Street was expecting. 

The Clorox Company sign in gray letters on an office wall


So what

That's not to say Clorox's rise last month came all at once, as is so often the case with more volatile names in the stock market of late. Rather, Clorox's share price rose gradually throughout the month to end up more than 10%, easily outpacing the S&P 500's modest 2.6% return over the same period.

In any case, chairman and CEO Benno Dorer said he was "very pleased" with the company's start to the fiscal year, noting its growth came despite a difficult comparison to "very good results" in the same year-ago period.

"Broad-based strength in our business from strong execution of our 2020 Strategy led to sales increases and gross margin expansion across all of our segments," Dorer elaborated.

Now what

Looking ahead to the full fiscal year, Clorox also told investors to expect 1% to 3% sales growth (down from 2% to 4% previously), and earnings per diluted share in the range of $5.47 to $5.67 (down from its prior range of $5.52 to $5.72). These slight changes might look concerning at first glance, but they primarily reflect divestiture of its Aplicare business in late August. So more than anything, Clorox's "new" guidance was effectively a reiteration of its previous expectations.

In the end, though, given its slight bottom-line beat to kick off the fiscal year, it was no surprise to see Clorox stock climbing in response last month.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Clorox Company Stock Quote
The Clorox Company
$143.90 (2.07%) $2.92

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.