Clorox Stock Rose on Robust Fiscal 4Q17 Results
Stock rose 2.1%
Clorox (CLX) reported strong fiscal 4Q171 results amid moderating category growth in several key markets, primarily in the US (SPY). The company’s stock rose 2.1% before closing at $134.73 on August 3.
For fiscal 4Q17, the company exceeded analysts’ bottom-line expectations. Its sales were in line with the consensus estimate. Notably, the company generated healthy volume growth, which is in contrast to most of its peers. Consumer product companies have struggled to drive volume growth.
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Clorox continues to generate strong sales and volumes growth despite industry-wide softness. The company’s formidable portfolio of market leading brands, ability to increase prices, and focus on innovation has helped it to outperform its peers in terms of sales growth.
However, a slowdown in demand for consumer products and increased competitive activity could pose a challenge in the coming quarters.
YTD stock movement
On August 3, Clorox stock was up 12.3% on a YTD (year-to-date) basis. In comparison, the company’s stock generated higher returns than most of its peers. The exception is Church & Dwight (CHD) stock, which is up 17.2% YTD. During the same period, Kimberley-Clark (KMB), Colgate-Palmolive (CL), and Procter & Gamble (PG) stock have risen 6.6%, 9.4%, and 8.1%, respectively.
Clorox stock also exceeded the S&P 500 (SPX) in terms of price gains. YTD, the S&P 500 is up 10.4%.
Clorox reported its fiscal 4Q17 results on August 3, 2017. We’ll analyze the company’s fiscal 4Q17 performance in this series. We’ll also discuss analysts’ recommendations and current valuations for CLX stock.
- fiscal 4Q17 ended June 30, 2017 ↩