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Clorox Has Declared a Dividend of $0.80 per Share

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Sep. 14 2016, Updated 5:04 p.m. ET

CLX’s price movements

Clorox (CLX) has a market cap of $16.5 billion. It fell 0.77% to close at $123.09 per share on September 13, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -6.8%, -7.7%, and -1.2%, respectively, on the same day.

CLX is trading 5.4% below its 20-day moving average, 7.2% below its 50-day moving average, and 4.0% below 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 13.5% on September 13, 2016.

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

  • Procter & Gamble (PG): $236.5 billion
  • Colgate-Palmolive (CL): $66.0 billion
  • Church & Dwight (CHD): $12.4 billion

Clorox has declared a dividend

Clorox has declared a regular quarterly dividend of $0.80 per share on its common stock. The dividend will be paid on November 14, 2016, to shareholders of record at the close of business on October 26, 2016.

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Performance of Clorox in fiscal 4Q16 and fiscal 2016

Clorox reported fiscal 4Q16 net sales of $1.6 billion, a rise of 2.8% compared to $1.56 billion in fiscal 4Q15. Sales for its Cleaning, Household, and Lifestyle segments rose 6.0%, 5.0%, and 3.7%, respectively, and sales for its International segment fell 8.6% in fiscal 4Q16 compared to fiscal 4Q15. The company’s gross profit margin fell 0.36% in fiscal 4Q16 compared to the prior year’s period.

Its net income and EPS (earnings per share) fell to $165.0 million and $1.26, respectively, in fiscal 4Q16 compared to $191.0 million and $1.46, respectively, in fiscal 4Q15.

Fiscal 2016 results

In fiscal 2016, CLX reported net sales of $5.8 billion, a rise of 1.8% YoY (year-over-year). The company’s gross profit margin rose 2.2% in fiscal 2016.

Its net income and EPS rose to $648.0 million and $4.92, respectively, in fiscal 2016 compared to $580.0 million and $4.37, respectively, in fiscal 2015. It reported non-GAAP (generally accepted accounting principles) EBITDA (earnings before interest, tax, depreciation, and amortization) of $1.2 billion in fiscal 2016, a rise of 3.8% YoY.

Clorox’s cash and cash equivalents and inventories rose 5.0% and 15.1%, respectively, in fiscal 2016. Its current ratio fell to 0.95x in fiscal 2016 compared to 1.0x in fiscal 2015. It reported non-GAAP free cash flow of $596.0 million in fiscal 2016, a fall of 18.7% YoY.

Projections

Clorox (CLX) has made the following projections for fiscal 2017:

  • sales growth of 2%–4%, or 4%–6% excluding the 2% impact of unfavorable foreign currency exchange rates
  • EPS of $5.38–$5.58, including the benefit of about $0.25–$0.30 from its adoption of Accounting Standards Update 2016-09
  • EBIT (earnings before interest and tax) margin expansion of 0.25%–0.50%
  • effective tax rate of 30%–31%

In the next part of the series, we’ll take a look at Under Armour (UA).

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