Clorox ( NYSE: CLX ) cleared the bar set by analysts for its fiscal second quarter, flexing its pricing power to generate year over year sales growth.
The California-based manufacturer of cleaning products notched a 1% increase in net sales from the prior year quarter to $1.72B. Gross margin expanded 320 basis points to 36.2% from 33% in the prior year quarter due in large part to pricing actions, helping adjusted diluted EPS climb 43% from the prior year to $0.98. Analysts had expected $0.66 in EPS and $1.66B in revenue for the quarter.
“We delivered better-than-expected results this quarter, with strong execution and the benefit of continued brand relevance as well as our ongoing pricing and cost savings efforts,” CEO Linda Rendle said. “The actions we are taking to rebuild margin are working, and we are relentlessly driving additional improvements while investing in our brands, categories and capabilities. Going forward, we are confident that our leading product portfolio in essential categories coupled with our proactive actions will enable us to navigate current macroeconomic challenges and return to more consistent profitable growth over time.”
For the full-year, net sales are expected to range from a 2% decrease to a 1% increase as compared to 2022. That forecast is raised from a 4% to 2% decline projected in the fiscal first quarter earnings report. Adjusted earnings per share are now expected to be between $4.05 and $4.30, also improved from a prior $3.85 to $4.22 guide. The updated forecasts suggest upside to the analyst consensus on revenue and EPS set at $7.08B and $4.11, respectively.
Shares of Clorox ( CLX ) rose 4.03% in Thursday’s extended session.
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Clorox stock gains as price hikes promote earnings beat, raised guide