Clorox Co. experienced a significant boost in its shares, climbing 6.7% in extended trading on Thursday. The bleach and cleaning products manufacturer has successfully rebounded from last year’s cybersecurity attack, which had caused widespread disruption to its operations.
Impressive Sales Growth
In the fiscal second quarter, Clorox reported sales of $1.99 billion, reflecting a remarkable 16% increase compared to the same period last year ($1.715 billion). This surge in sales can be attributed to higher volume, as the company diligently rebuilt customer inventories following the cybersecurity attack. Additionally, a favorable price mix has contributed to this growth, although there have been some setbacks due to unfavorable foreign-exchange rates.
Recovery Plan Exceeds Expectations
Last year’s cybersecurity attack in August 2023 had forced Clorox to revise its outlook and adopt a cautious stance. However, the company has made tremendous progress in executing its recovery plan. Chief Executive Linda Rendle expressed her satisfaction with the results, stating, “Our second-quarter results reflect strong execution on our recovery plan from the August cyberattack. We are rebuilding retailer inventories ahead of schedule, enabling us to return to merchandising and restore distribution.”
Clorox’s successful rebound and impressive sales growth demonstrate its resilience and ability to adapt to challenging circumstances. With a robust recovery plan in place, the company is well positioned for continued success in the future.
Clorox Reports Strong Financial Results in Second Quarter
In the second quarter, Clorox recorded a net income of $93 million, or 75 cents per share, compared to $99 million, or 80 cents per share, in the same period last year. After adjusting for certain factors, the company reported earnings of $2.16 per share. This exceeded analysts’ expectations of $1.09 per share.
Positive Outlook for the Full Year
Clorox also provided an update on its full-year outlook. The company now expects sales to decrease by a low single-digit percentage, as opposed to the previous projection of a mid- to high single-digit decline. This revised outlook reflects the steady progress made by Clorox in the second quarter, as well as higher expectations for the latter half of the fiscal year. However, this positive outlook is somewhat dampened by the 5-point unfavorable impact of foreign-exchange rates, mainly due to the devaluation of the Argentine peso.
Upward Revision of Earnings Forecasts
For the full year, Clorox now anticipates earnings to be in the range of $3.06 to $3.26 per share. This exceeds the earlier forecast of $2.10 to $2.60 per share. Similarly, adjusted earnings are expected to fall between $5.30 and $5.50 per share, up from the prior estimate of $4.30 to $4.80 per share. Analysts surveyed by FactSet are currently projecting full-year adjusted earnings of $4.60 per share.
These impressive financial results and upward revisions demonstrate Clorox’s strong performance and its ability to adapt to challenging market conditions.
Clorox Shares Outperform S&P 500
Despite the challenging market conditions, Clorox has demonstrated remarkable strength, with its shares surging by 5% over the past 52 weeks. In comparison, the S&P 500 index recorded a gain of 17.4%. This impressive performance showcases Clorox’s resilience and ability to deliver favorable returns to its investors.