Shares of Clorox surged in after-hours trading on Thursday, following the company’s announcement of an improved outlook for the year. The cleaning-product maker has been working to rebuild retailer inventories after a cyberattack disrupted its operations.
Sales Expectations Upgraded
Clorox now anticipates that sales for the year ending in June will only be down low-single digits, a significant improvement from its previous guidance of high- to mid-single-digit declines. This positive revision reflects the company’s success in accelerating its inventory recovery.
Earnings Per Share Outlook
In addition to raising its sales forecast, Clorox also increased its full-year earnings-per-share outlook. The company now expects earnings per share to range between $3.06 and $3.26, up from the previous estimate of $2.10 to $2.60. Furthermore, Clorox announced that it anticipates a 200 basis-point increase in its gross margin for the full year.
Strong Second-Quarter Performance
Clorox reported a second-quarter net profit of $93 million, or 75 cents per share. This figure compares favorably to last year’s performance of $99 million, or 80 cents per share, during the same period. After adjusting for one-time items, the company’s earnings per share reached $2.16, surpassing analysts’ expectations of $1.09.
Impressive Sales Growth
Sales for the second quarter soared 16% to $1.99 billion, driven by volume growth across all categories. Wall Street analysts had predicted lower sales of $1.80 billion, making Clorox’s performance even more impressive.
Clorox’s positive outlook, strong earnings, and robust sales growth underscore the company’s resilience and ability to recover from challenging circumstances. With its strategic initiatives and market-leading position, Clorox continues to demonstrate its commitment to delivering value to shareholders.