In its second-quarter report, Clorox Company (CLX) revised upward its earnings forecast for the full fiscal year. Clorox now projects its annual earnings per share to be in the range of $5.52 to $5.92, improving upon its prior guidance of $5.17 to $5.42. This adjustment accounts for the impact of several non-recurring charges incurred during the previous fiscal year.
The company has also raised its adjusted earnings expectations, now projecting a figure between $6.95 and $7.35 per share, up from the earlier estimate of $6.65 to $6.90. This revision principally reflects a projected net benefit of 25 to 45 cents per share, attributed to increased shipments associated with Clorox's Enterprise Resource Planning (ERP) transition.
Regarding sales forecasts, Clorox anticipates a variation between a 1% decline to a 2% increase, inclusive of a 1 to 2 percentage point uplift due to additional shipments linked to the ongoing ERP transition. It is noted that this increase is forecasted to revert in the first half of the upcoming fiscal year.
Additionally, Clorox and Procter & Gamble (P&G) have mutually agreed to dissolve their joint venture concerning Glad bags and wraps, set to conclude on January 31, 2026. Upon termination, Clorox plans to acquire P&G's 20% stake in the partnership.
Post-venture, Clorox expects the Glad business to maintain exclusive rights to core intellectual property licenses originally provided by P&G for specific licensed products, free of royalty obligations.
