OAKLAND – Shares of The Clorox Company (NYSE:) surged 2.8% after the consumer products giant reported better-than-expected fiscal first quarter results and raised its full-year earnings guidance.
Clorox posted adjusted earnings per share of $1.86 for the quarter ended September 30, handily beating the analyst consensus estimate of $1.39. Revenue rose 27% YoY to $1.76 billion, also topping expectations of $1.64 billion.
The company said the strong performance was driven largely by higher volume as it lapped impacts from last year’s cyberattack. Organic sales, which exclude effects of divestitures and currency fluctuations, jumped 31% in the quarter.
“We achieved better-than-expected results this quarter and fully restored overall market share, enabling us to maintain our sales outlook and raise our gross margin and EPS outlook for the year,” said Chair and CEO Linda Rendle.
Clorox now expects full-year fiscal 2025 adjusted EPS of $6.65 to $6.90, up from its previous guidance of $6.55 to $6.80 and above the $6.65 Wall Street consensus.
The company maintained its outlook for flat to 2% lower net sales in fiscal 2025, but still sees organic sales growth of 3% to 5%.
Gross margin expanded 740 basis points to 45.8% in Q1, which Clorox attributed to higher volume and cost savings. The company now expects gross margin to improve 100 to 150 basis points for the full year, up from its prior forecast of about 100 basis points of expansion.
“As our consumers remain under pressure, we’re focused on delivering superior value, strong innovation and continued investment in our brands to win with consumers and grow share,” Rendle added.
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