Clorox beats by $0.07, beats on revs; guides FY16 EPS below consensus, revs below consensus
Reports Q4 (Jun) earnings of $1.44 per share, $0.07 better than the Capital IQ Consensus Estimate of $1.37; revenues rose 4.0% year/year to $1.56 bln vs the $1.53 bln consensus. Fourth-quarter diluted EPS results reflect the benefits of higher sales and gross margin expansion. In addition, the sale of real estate assets by a low-income housing partnership contributed a one-time benefit of 6 cents to diluted EPS. These factors were partially offset by increased selling and administrative expenses, primarily from higher performance-based incentive costs as a result of strong fiscal-year financial performance; compared to the prior year which reflected lower performance-based incentive costs when the company's results fell below financial targets. In addition to the impact on selling and administrative expenses, the impact of incentive costs is reflected in cost of goods sold and research and development on the income statement. Increased investments in total demand-building programs also reduced fourth-quarter diluted EPS.
- Co issues downside guidance for FY16, sees EPS of $4.63-4.83 vs. $4.84 Capital IQ Consensus Estimate; sees FY16 revs flat to 1% higher (3% to 4% growth, currency neutral), which equates to roughly $5.655-5.712 bln vs. $5.74 bln Capital IQ Consensus Estimate.