Clorox Earnings Show It’s Gone From Covid Winner to Reopening Loser

1 month ago 11
PR Distribution

Updated Aug. 3, 2021 8:51 americium ET / Original Aug. 3, 2021 8:01 americium ET

  • Order Reprints
  • Print Article

Text size

A vessel of Clorox bleach successful Culver City, California

Chris Delmas/AFP via Getty Images

Clorox banal was tumbling aft the company’s earnings fell acold abbreviated of expert expectations.

Clorox reported a fiscal fourth-quarter adjusted nett of 95 cents a share, missing expert forecasts for $1.36 a share, connected income of $1.8 billion, beneath expectations for $1.92 billion. But Clorox didn’t halt there. It said it would gain betwixt $540 and $5.70 successful fiscal 2022, good beneath expert forecasts for $7.67. Clorox blamed higher commodity prices and different rising costs for the large miss, arsenic good arsenic “volatility.”

“Fiscal twelvemonth 2021 was an bonzer twelvemonth for Clorox, with the pandemic putting america done the trial of volatility, including accelerated changes successful user request and inflationary pressure, which is reflected successful our 4th fourth results,” said CEO Linda Rendle. “It reinforced the spot of our planetary portfolio, which has ne'er been much applicable to consumers.”

Investors seemingly disagree with that assessment. Clorox banal was down 11% to $160.57 successful premarket trading.

Still, Clorox’s miss shouldn’t travel arsenic a surprise. Unilever (UL) and Lysol shaper Reckitt Benckiser (RBGLY) besides talked astir rising costs successful their net reports.

Still, fewer stocks person had the benignant of thrust Clorox has had. It was an aboriginal Covid-19 darling, gaining much than 50% from the opening of February done aboriginal August. It’s been each downhill since then, however, with the shares having fallen 22% done Monday’s close—with much inactive to come.

Write to Ben Levisohn astatine ben.levisohn@barrons.com

Read Entire Article