By Dean Seal
Clorox is scheduled to report earnings for its fiscal fourth quarter after the bell on Wednesday. Here’s what you need to know.
PROFIT: Clorox, the maker of its namesake bleach brand and Pine-Sol, is expected to post a profit of $132 million, or $1.05 a share, according to FactSet. That’s up from $101 million, or 81 cents a share, in the same quarter a year ago.
ADJ EARNINGS: Adjusted earnings, which strip out one-time items, are expected to be $1.17 a share, according to FactSet.
SALES: Revenue is expected to jump to $1.88 billion from $1.8 billion in the year-ago period, according to FactSet.
WHAT TO WATCH
PRICING: Like other makers of household goods, Clorox says it has been raising prices to manage persistent cost inflation. Last quarter, it said higher prices helped inform its decision to increase gross margin guidance for the year. Investors will be curious about how much pricing power the company retains as consumer discretionary spending tightens.
COSTS: The company said three months ago that elevated commodity costs continue to weigh on its margins and earnings, while higher manufacturing and logistics are likewise eating into its bottom line. CEO Linda Rendle said the company is taking a broad set of actions to address the cost inflation. Investors will be looking to see if those costs headwinds are finally abating.
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