2023-05-02 16:45:43 ET
Clorox ( NYSE: CLX ) shares rose sharply in after hours trading on Tuesday after beating fiscal third quarter estimates and elevating full-year forecasts.
For Q3, $1.51 in earnings per share beat consensus estimates by $0.29. Meanwhile, a 6.1% jump in revenue year over year to $1.91B came in $90M stronger than expectations on the Street as an 8% rise in prices offset a modest volume decline. Gross margin expanded 590 basis points year over year to 41.8% largely due to pricing actions as well.
“Our strong results this quarter reflect solid execution against our priorities to rebuild margin and drive top-line growth amid a challenging operating environment,” CEO Linda Rendle said. “We continue to take a broad set of actions to address persistent cost inflation, including pricing and cost savings efforts.”
Rendle also said that the company is able to raise its outlook based upon investments in product innovation, digital transformation, efficiency improvements, and pricing actions. She expects the company’s actions thus far in fiscal 2023 set the company up to end the year on a profitable path.
Net sales are now expected to increase between 1% and 2%, up from a prior forecast of a range between a 2% decrease and 1% increase. Analysts had forecast a 0.3% rise in revenue for the full year.
Gross margin is now expected to increase between 250 and 300 basis points due to continued pricing actions and easing costs, up from a prior expectation of a 200 basis point expansion. As a result, adjusted earrings per share are now expected to be between $4.35 and $4.50, revised from a prior $4.05 to $4.30 guidance range. The new guidance also tops the consensus estimate at $4.26.
Shares of Clorox ( CLX ) carried 1.77% shortly after the print .
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Clorox stock rises on clean Q3 beat, boosted full-year guide