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The Zacks Consensus Estimate for fourth-quarter fiscal 2024 revenues is pegged at $1.97 billion, suggesting a decrease of 2.4% from the prior-year quarter’s reported figure. The consensus mark for quarterly earnings has risen by a penny in the past 30 days to $1.54 per share. The consensus mark indicates a 7.8% decline from the prior-year quarter’s actual.
The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $7.2 billion, suggesting a decrease of 3.1% from the prior-year quarter’s reported figure. The consensus mark for quarterly earnings has declined by a penny in the past seven days to $5.91 per share. The consensus mark indicates 16.1% growth from the prior-year quarter’s actual.
The consumer and professional product company has a trailing four-quarter earnings surprise of 128.5%, on average. CLX delivered an earnings surprise of 28.6% in the last reported quarter.
Clorox has been benefiting from pricing strategies and cost-saving initiatives. These positives have been bolstering the company’s margins for a while now. These traits are expected to have aided its performance in the to-be-reported quarter.
Clorox has been on track with its IGNITE strategy, which aims at growth by focusing on innovation, digital commerce and brand building. It has been committed to streamlining its operating model, which is likely to have improved efficiency and driven productivity.
The streamlined operating model has been enhancing the company's ability to respond more quickly to changing consumer behaviors, innovate faster and increase cash flow driven by cost savings in the areas of selling and administration, supply chain, marketing and research, and development.
The implementation of the new model is expected to be completed in fiscal 2024, which should benefit fiscal fourth-quarter performance.
On the last reported quarter’s earnings call, management envisioned net sales for fiscal 2024 to be down year over year in the low-single digits. However, management expected sales to be at the low end of the range, reflecting the impacts of the divestiture of the business in Argentina and soft third-quarter fiscal 2024 results. Organic sales for fiscal 2024 are anticipated to rise in the low-single digits, but at the low end of the range.
The gross margin for fiscal 2024 is projected to be up 275 basis points, driven by gains of lower input cost headwinds, supply-chain inflation and the impacts of cyberattacks, offset by the modest benefit from exiting Argentina, gains of pricing actions, cost savings and supply-chain optimization .
Our model predicts the gross margin to expand 30 basis points to 43% in the fourth quarter and 270 bps to 42.1% for fiscal 2024.
However, Clorox’s quarterly performance is expected to have been marred by rising SG&A expenses, resulting from accelerated investments in digital capabilities, the implementation of the streamlined operating model and expenses incurred for the cyberattack. This is expected to have led to higher SG&A expenses for the to-be-reported quarter and fiscal 2024.
On the last reported quarter’s earnings call, management projected SG&A expenses for fiscal 2024 to be 16-17% of net sales, including 2.5 points of impacts of investments to enrich its digital capabilities, the implementation of the streamlined operating model and expenses resulting from the cyberattack.
Our model predicts selling and administrative expenses, as a rate of sales, to be 16.9% for fiscal 2024, indicating a year-over-year increase of 90 bps. Advertising and sales promotion spending is forecast to be higher than 11% of net sales, implying the impacts of lower sales and the exit from Argentina.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Clorox this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Clorox has an Earnings ESP of +1.20% and a Zacks Rank #3.
Other Stocks With Favorable Combination
Here are some other companies that also have the right combination of elements to post an earnings beat this season.
Church & Dwight Co., Inc. (CHD - Free Report) currently has an Earnings ESP of +2.60% and a Zacks Rank #3. CHD is anticipated to register top-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.5 billion, indicating an increase of 3.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Church & Dwight’s bottom line has been unchanged in the past 30 days at 84 cents per share. The consensus estimate for earnings per share (EPS) suggests a decline of 8.7% from the prior-year quarter’s reported figure. CHD has delivered an earnings beat of 9.6%, on average, in the trailing four quarters.
Procter & Gamble (PG - Free Report) currently has an Earnings ESP of +0.64% and a Zacks Rank #3. The company’s top line is expected to increase from the prior-year level when it reports second-quarter 2024 results. The Zacks Consensus Estimate for PG’s quarterly revenues is pegged at $20.7 billion, suggesting a rise of 0.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for PG’s quarterly EPS is pegged at $1.37, unchanged from the year-ago reported figure. PG has a trailing four-quarter earnings surprise of 6.5%, on average.
Freshpet (FRPT - Free Report) has an Earnings ESP of +146.84% and a Zacks Rank #3 at present. The company’s top and bottom lines are expected to increase from the year-earlier levels when it reports second-quarter 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $230.9 million, which suggests growth of 26% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for FRPT’s quarterly loss has been unchanged in the past 30 days at 6 cents. The consensus estimate for earnings indicates an improvement from a loss of 35 cents reported in the year-ago quarter. FRPT has delivered an earnings surprise of 118.2%, on average, in the trailing four quarters.
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Can Clorox's (CLX) Pricing & Cost-Saving Plan Aid Q4 Earnings?
The Clorox Company (CLX - Free Report) is likely to register declines in the top and bottom lines when it reports fourth-quarter fiscal 2024 results on Aug 1, 2024, before market open.
The Zacks Consensus Estimate for fourth-quarter fiscal 2024 revenues is pegged at $1.97 billion, suggesting a decrease of 2.4% from the prior-year quarter’s reported figure. The consensus mark for quarterly earnings has risen by a penny in the past 30 days to $1.54 per share. The consensus mark indicates a 7.8% decline from the prior-year quarter’s actual.
The Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $7.2 billion, suggesting a decrease of 3.1% from the prior-year quarter’s reported figure. The consensus mark for quarterly earnings has declined by a penny in the past seven days to $5.91 per share. The consensus mark indicates 16.1% growth from the prior-year quarter’s actual.
The consumer and professional product company has a trailing four-quarter earnings surprise of 128.5%, on average. CLX delivered an earnings surprise of 28.6% in the last reported quarter.
The Clorox Company Price and EPS Surprise
The Clorox Company price-eps-surprise | The Clorox Company Quote
Factors to Consider
Clorox has been benefiting from pricing strategies and cost-saving initiatives. These positives have been bolstering the company’s margins for a while now. These traits are expected to have aided its performance in the to-be-reported quarter.
Clorox has been on track with its IGNITE strategy, which aims at growth by focusing on innovation, digital commerce and brand building. It has been committed to streamlining its operating model, which is likely to have improved efficiency and driven productivity.
The streamlined operating model has been enhancing the company's ability to respond more quickly to changing consumer behaviors, innovate faster and increase cash flow driven by cost savings in the areas of selling and administration, supply chain, marketing and research, and development.
The implementation of the new model is expected to be completed in fiscal 2024, which should benefit fiscal fourth-quarter performance.
On the last reported quarter’s earnings call, management envisioned net sales for fiscal 2024 to be down year over year in the low-single digits. However, management expected sales to be at the low end of the range, reflecting the impacts of the divestiture of the business in Argentina and soft third-quarter fiscal 2024 results. Organic sales for fiscal 2024 are anticipated to rise in the low-single digits, but at the low end of the range.
The gross margin for fiscal 2024 is projected to be up 275 basis points, driven by gains of lower input cost headwinds, supply-chain inflation and the impacts of cyberattacks, offset by the modest benefit from exiting Argentina, gains of pricing actions, cost savings and supply-chain optimization .
Our model predicts the gross margin to expand 30 basis points to 43% in the fourth quarter and 270 bps to 42.1% for fiscal 2024.
However, Clorox’s quarterly performance is expected to have been marred by rising SG&A expenses, resulting from accelerated investments in digital capabilities, the implementation of the streamlined operating model and expenses incurred for the cyberattack. This is expected to have led to higher SG&A expenses for the to-be-reported quarter and fiscal 2024.
On the last reported quarter’s earnings call, management projected SG&A expenses for fiscal 2024 to be 16-17% of net sales, including 2.5 points of impacts of investments to enrich its digital capabilities, the implementation of the streamlined operating model and expenses resulting from the cyberattack.
Our model predicts selling and administrative expenses, as a rate of sales, to be 16.9% for fiscal 2024, indicating a year-over-year increase of 90 bps. Advertising and sales promotion spending is forecast to be higher than 11% of net sales, implying the impacts of lower sales and the exit from Argentina.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Clorox this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Clorox has an Earnings ESP of +1.20% and a Zacks Rank #3.
Other Stocks With Favorable Combination
Here are some other companies that also have the right combination of elements to post an earnings beat this season.
Church & Dwight Co., Inc. (CHD - Free Report) currently has an Earnings ESP of +2.60% and a Zacks Rank #3. CHD is anticipated to register top-line growth when it reports second-quarter 2024 results. The Zacks Consensus Estimate for Church & Dwight’s quarterly revenues is pegged at $1.5 billion, indicating an increase of 3.8% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Church & Dwight’s bottom line has been unchanged in the past 30 days at 84 cents per share. The consensus estimate for earnings per share (EPS) suggests a decline of 8.7% from the prior-year quarter’s reported figure. CHD has delivered an earnings beat of 9.6%, on average, in the trailing four quarters.
Procter & Gamble (PG - Free Report) currently has an Earnings ESP of +0.64% and a Zacks Rank #3. The company’s top line is expected to increase from the prior-year level when it reports second-quarter 2024 results. The Zacks Consensus Estimate for PG’s quarterly revenues is pegged at $20.7 billion, suggesting a rise of 0.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for PG’s quarterly EPS is pegged at $1.37, unchanged from the year-ago reported figure. PG has a trailing four-quarter earnings surprise of 6.5%, on average.
Freshpet (FRPT - Free Report) has an Earnings ESP of +146.84% and a Zacks Rank #3 at present. The company’s top and bottom lines are expected to increase from the year-earlier levels when it reports second-quarter 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $230.9 million, which suggests growth of 26% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for FRPT’s quarterly loss has been unchanged in the past 30 days at 6 cents. The consensus estimate for earnings indicates an improvement from a loss of 35 cents reported in the year-ago quarter. FRPT has delivered an earnings surprise of 118.2%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.