Shares of Clorox (NYSE: CLX) , an iconic consumer staples company best known for its namesake bleach, fell sharply at the open of trading on Feb. 4, quickly losing 13% of its value. The big news came out after the close on Feb. 3, when the company reported earnings. Investors were not pleased and, perhaps, for good reason.
On the top line, Clorox reported revenue of $1.7 billion in the fiscal second quarter of 2022, down 8% from the same quarter of the previous year. Although sales were up 19% from the fiscal second quarter of 2019, which is hard to complain about, investors are likely worried that the spike in demand from the coronavirus is fading. That's not unreasonable at all, noting that organic sales also fell 8%. Analysts appeared to be expecting the year-over-year sales decline, however, given that Clorox's revenue was roughly in line with Wall Street's consensus estimate. Still, the broader sales trend issue sets a somewhat negative stage for earnings per share, which is where the news was really bad.
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Why Clorox Stock Tumbled 13% at the Open Today