Clorox Up After Q3 Earnings, Cuts Outlook on Inflation Concerns
2022.05.03 21:49
By Sam Boughedda
Investing.com — Clorox Co (NYSE:CLX) shares jumped 2.9% after reported its third-quarter earnings.
The cleaning products company reported revenue increased by 2% to $1.81 billion, beating forecasts of $1.79 billion. Earnings per share also beat forecasts, coming in at $1.31 compared with the 93 cents forecasted.
“We saw continued strong demand for our products this quarter and delivered sequential gross margin improvement against the backdrop of a volatile and challenging environment,” said CEO Linda Rendle.
However, Rendle added that “cost inflation continues to increase and uncertainty remains” despite the strength across its brands.
As a result of those inflation concerns, the company cut its outlook for fiscal 2022. Net sales are expected to decrease 1% to 4%, and adjusted earnings per share are now expected to be between $4.05 and $4.30.
Furthermore, gross margins decreased by 800 basis points due to higher anticipated commodity and manufacturing costs.
