The Clorox Company (NYSE:CLX) is a well-known name in the consumer products industry, offering a range of cleaning and household products. As it prepares to release its quarterly earnings on February 3, 2025, Wall Street analysts have set their expectations with an estimated earnings per share (EPS) of $1.39 and projected revenue of approximately $1.63 billion.
Despite these projections, Clorox is expected to face a decline in both revenue and earnings. The Zacks Consensus Estimate forecasts revenues at $1.64 billion, marking a 17.8% decrease from the same quarter last year. The consensus estimate for quarterly earnings has increased by 1.4% over the past week to $1.39 per share, yet this still represents a 35% decline from the previous year's figure.
Clorox has been navigating a challenging macroeconomic environment, with consumers under financial pressure. Increased advertising expenses have also impacted profitability. However, the company's IGNITE Strategy, which focuses on innovation, efficiency, and international expansion, positions Clorox for potential growth despite these challenges.
Clorox has a strong track record of surpassing earnings expectations, with an average earnings surprise of 27.47% over the past two quarters. In the most recent quarter, Clorox reported earnings of $1.86 per share, significantly exceeding the Zacks Consensus Estimate of $1.36 per share, resulting in a surprise of 36.76%. This consistent performance has led to positive revisions in earnings estimates, suggesting continued investor confidence.
The company's financial metrics reflect its market position. Clorox has a price-to-earnings (P/E) ratio of approximately 55.02, indicating investor willingness to pay $55.02 for every dollar of earnings. The price-to-sales ratio stands at about 2.63, and the enterprise value to sales ratio is approximately 2.98. These figures highlight Clorox's valuation relative to its sales and cash flow.
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