The 10-second takeaway
For the quarter ended March 31 (Q3), Clorox missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share contracted slightly. GAAP earnings per share contracted.
Gross margins dropped, operating margins increased, net margins were steady.
Clorox tallied revenue of $1.41 billion. The 13 analysts polled by S&P Capital IQ hoped for revenue of $1.44 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.00. The 17 earnings estimates compiled by S&P Capital IQ predicted $1.05 per share. Non-GAAP EPS of $1.00 for Q3 were 2.0% lower than the prior-year quarter's $1.02 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS of $0.99 for Q3 were 1.0% lower than the prior-year quarter's $1.00 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 42.1%, 20 basis points worse than the prior-year quarter. Operating margin was 16.5%, 40 basis points better than the prior-year quarter. Net margin was 9.4%, much about the same as the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.59 billion. On the bottom line, the average EPS estimate is $1.35.
Next year's average estimate for revenue is $5.69 billion. The average EPS estimate is $4.33.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 853 members out of 891 rating the stock outperform, and 38 members rating it underperform. Among 309 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 305 give Clorox a green thumbs-up, and four 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 $80.50.
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