Overview

• U.S. household products maker's fiscal Q3 revenue was flat, meeting analyst expectations

• Adjusted EPS for fiscal Q3 rose 13% and beat analyst expectations

• Company completed GOJO Industries acquisition, adding Purell to its portfolio

Outlook

• Clorox now expects fiscal 2026 net sales to decline about 6%, versus prior low end of 6%-10% range

• Company sees fiscal 2026 adjusted EPS between $5.45 and $5.65, down from prior low end of $5.95-$6.30

• Clorox expects fiscal 2026 gross margin to decline 250-300 basis points, versus prior low end of 50-100 basis points

Result Drivers

• HIGHER COSTS - Gross margin fell due to increased manufacturing and logistics costs and unfavorable product mix, partially offset by cost savings

• COST SAVINGS AND LOWER SPENDING - Adjusted EPS benefited from cost savings, lower advertising investments, and reduced selling and administrative expenses

• SEGMENT VARIATION - Household and International segments saw sales growth, while Lifestyle declined and Health and Wellness was flat

Company press release: ID:nPn9flWLa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Revenue	Meet	$1.67 bln	$1.67 bln (12 Analysts)
Q3 Adjusted EPS	Beat	$1.64	$1.55 (15 Analysts)
Q3 EPS		$1.54
Q3 Gross Margin		43.20%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 14 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the household products peer group is "buy."

• Wall Street's median 12-month price target for Clorox Co is $111.00, about 17.1% above its April 29 closing price of $94.77

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

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