Last quarter overview
The Clorox Company (CLX) is set to release its fiscal 2Q16 earnings after the market opens on February 4, 2016. The company’s second quarter for fiscal 2016 ended on December 31, 2015. Its earnings and revenue were ahead of consensus Wall Street analysts’ expectations in fiscal 1Q16, which ended on September 30, 2015.
Clorox reported a rise in revenue of 2.8% to $1.4 billion in fiscal 1Q16. Despite three percentage points of unfavorable foreign currency impact and slightly higher trade promotion spending, revenue rose. This was primarily due to the company’s strong volume growth of 3% and the benefits of price increases.
Wall Street analysts’ estimate
For fiscal 2Q16, Wall Street analysts’ consensus revenue estimate for Clorox is ~$1.3 billion, a 3.4% rise from the same quarter last year.
Clorox’s organic growth also rose to 2.8% in fiscal 1Q16. This was reflective of rises across all US businesses. For peers Kimberly-Clark (KMB) and Colgate-Palmolive (CL), organic sales grew. KMB’s 3Q15 organic sales grew more than 5%, while CL’s 3Q15 organic sales grew 5.0%. Church & Dwight Co.’s (CHD) organic sales also grew 3.2% in 3Q15.
Improving category trends
Six of Clorox’s eight US retail business units increased their market shares, with particularly strong gains in home care and charcoal. In addition to market share improvement, the company is focusing on driving improved category trends.
Clorox also aims to keep a watch this winter’s cold and flu trends, which have been muted so far. The company could recognize strong growth in its professional products healthcare business due to Ebola and Enterovirus in the coming quarter.
Clorox has a total weight of 3.5% in the First Trust Consumer Staples AlphaDEX ETF (FXG).[1. Updated as of January 25, 2016]