© Reuters. What’s In Store For Clorox This Earnings Season? Analyst Sees Issues With Trash Bags, Cat Litter & More
Benzinga – by Nabaparna Bhattacharya, Benzinga Editor.
RBC Capital Markets analyst Nik Modi reiterated the Sector Perform score on Clorox Company (NYSE:CLX), with a value goal of $138.
The firm will difficulty its second-quarter fiscal 12 months 2024 outcomes on Feb. 1, 2024.
Given that the inventory has rallied almost 20% since late October, the analyst is cautious concerning the firm going into the print.
While the analyst’s channel checks point out extra unhealthy than good, among the threat is mitigated, as this quarter’s outcomes needs to be supported by stock rebuild of shipments.
Per the analyst, focus can be on the corporate’s commentary concerning the second half of the 12 months given the huge steering ranges.
Per Modi, the topline vary is achievable however it’s positioned towards the underside finish of the EPS vary (given the expectation that the corporate must spend greater than the consensus is modeling on promoting and promotions).
The analyst flags that CLX is having points with trash luggage, cat litter, Hidden Valley Ranch (not nice, given the upcoming Super Bowl), and Wipes. On the opposite hand, charcoal is claimed to be performing properly, the analyst stated.
On the topline, whereas the analyst expects the pricing to proceed to reasonable (however not be destructive), volumes would must be within the -HSD% vary within the second half to achieve the low finish of steering (which is unlikely given the comparatively simple volumes comps and preliminary January Circana traits).
Overall, the 2023 cyber-attack actually set the corporate again and restoration will take longer than the buyside at the moment expects, the analyst notes.
The firm remains to be seeing shelf area challenges in classes equivalent to waste luggage, cat litter, wipes, and salad dressing.
In addition, the macro setting stays sluggish, which may put stress on a few of Clorox’s classes with a excessive diploma of personal label exposures, Modi notes.
Price Action: CLX shares are buying and selling increased by 0.79% to $145.85 on the final test Tuesday.
Latest Ratings for CLX
DateFirmActionFromTo| Feb 2022 | DA Davidson | Maintains | Neutral | |
| Feb 2022 | Barclays | Maintains | Underweight | |
| Feb 2022 | Morgan Stanley | Maintains | Underweight |
View More Analyst Ratings for CLX
View the Latest Analyst Ratings
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