Clorox misses by $0.19, beats on revs; guides FY22 EPS below consensus
- Reports Q2 (Dec) earnings of $0.66 per share, excluding non-recurring items, $0.19 worse than the S&P Capital IQ Consensus of $0.85; revenues fell 8.2% year/year to $1.69 bln vs the $1.66 bln S&P Capital IQ Consensus.
- The decline in net sales reflects a 10-point decline in volume and 2 points of favorable price mix. Foreign exchange was flat, and organic sales for the quarter declined 8%.
- "Although we expect cost pressures will continue through fiscal year 2022, we're confident we have the right strategy and are taking the right actions to strengthen our competitive position, build a stronger, more resilient company, and create long-term shareholder value."
- Co issues downside guidance for FY22, sees EPS of $4.25-4.50, excluding non-recurring items, vs. $5.44 S&P Capital IQ Consensus.
- Sees net sales decline of 1% to 4% (organic sales decline of 1% to 4%). Reflects a sales decline of 7% in the first half of fiscal year 2022, or an increase of 19% on a two-year stack basis, compared to 27% sales growth in the first half of fiscal year 2021. By the fourth quarter, the company expects sales to return to its long-term sales growth target of 3% to 5%.
- Gross margin decline of about 750 basis points, primarily due to higher than previously anticipated commodity and manufacturing & logistics costs, with the assumption of a return to gross margin expansion in the fourth quarter.