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Clorox Declared Quarterly Dividend of $0.80 Per Share

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Price movement of Clorox

Clorox (CLX) fell by 2.4% to close at $128.83 per share at the end of the third week of May 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -2.4%, 6.4%, and 2.8%, respectively. This means that CLX is trading 0.23% above its 20-day moving average, 1.3% above its 50-day moving average, and 5.4% above its 200-day moving average.

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Related ETF and peers

The SPDR S&P Dividend ETF (SDY) invests 1.1% of its holdings in Clorox. The ETF tracks a yield-weighted index of 50 dividend-paying companies from the S&P 1500 Composite Index that have increased dividends for at least 20 consecutive years. The YTD price movement of SDY was 9.0% as of May 20, 2016.

The market caps of Clorox’s competitors are as follows:

  • Procter & Gamble (PG): $216.1 billion
  • Colgate-Palmolive (CL): $63.4 billion
  • Church & Dwight (CHD): $12.5 billion

Clorox declared dividend

Clorox has declared a quarterly cash dividend of $0.80 per share on its common stock. The dividend will be paid on August 12, 2016, to shareholders of record at the close of business on July 27, 2016.

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Performance of Clorox in fiscal 3Q16

Clorox reported fiscal 3Q16 net sales of ~$1.4 billion, which is 1.8% higher than its $1.4 billion in net sales in fiscal 3Q15. Sales from its Cleaning, Household, and Lifestyle segments rose 5.2%, 3.5%, and 4.5%, respectively. But sales from its International segment fell 9.4% in fiscal 3Q16 compared to fiscal 3Q15. The company’s cost of products sold as a percentage of net sales fell 3.9% in fiscal 3Q16 compared to 3Q15.

Net income and EPS

Clorox’s net income and EPS (earnings per share) fell to $162 million and $1.23, respectively, in fiscal 3Q16 compared to $174 million and $1.30, respectively, in fiscal 3Q15.

Clorox’s cash and cash equivalents and inventories rose by 8.4% and 19.5%, respectively, in fiscal 3Q16, compared to fiscal 4Q15. Its current ratio rose to 1.2x in fiscal 3Q16 compared to 1.0x in fiscal 4Q15.

The company has acquired Renew Life Holdings for ~$290 million. The transaction, which closed on May 2, 2016, will contribute ~2% to the company’s sales in fiscal 2017. Through the end of fiscal 2017, the acquisition will likely dilute EPS by a mid-point estimate of $0.10, with $0.03–$0.05 in fiscal 2016 and $0.05–$0.07 in fiscal 2017.

Projections

Clorox has made the following projections for fiscal 2016:

  • sales growth of 1%–2% and 4%–5% on a currency-neutral basis
  • EPS of $4.85–$4.95
  • EBIT (earnings before interest and tax) margin expansion of about 0.50%

Next, let’s take a look at Gentex (GNTX).

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