Clorox Q4 2024: Earnings Beat, Revenue Decline
Key Highlights:
* Revenue: $1.69 billion (beat by 2.8%)
* Adjusted EPS: $1.55 (beat by 10.7%)
* Organic Revenue: -9% YoY
* Full-year Adjusted EPS guidance raised to $7.15
* Market Capitalization: $19.64 billion
Company Overview:
Clorox (NYSE: CLX), founded in 1913, is a consumer products giant with a diverse portfolio spanning from cleaning supplies to household products to skincare.
Household Products Industry:
Household products stocks are generally stable investments due to the essential nature of industry offerings. However, there is growing emphasis on eco-friendly and sustainable products, which can benefit innovating companies and hurt those not adapting.
Sales Growth:
Clorox's revenue has remained largely stagnant over the past three years, suggesting soft demand. Despite a 2.8% revenue beat in Q4 2024, analysts project flat revenue growth in the next 12 months.
Organic Revenue Growth:
Clorox has historically generated strong organic demand, with average growth of 6.4% YoY over the past two years. However, in Q4 2024, organic sales declined by 9% YoY, highlighting the need to monitor for any longer-term trend reversal.
Key Takeaways:
Clorox's Q4 results exceeded expectations, with strong beats on both organic revenue and EPS. The company raised its full-year EPS guidance, reflecting positive momentum. However, investors should consider the broader context of valuation, business qualities, and future earnings when evaluating Clorox as a potential investment.
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