The Clorox Company (NYSE: CLX) reported weaker than expected results for its fiscal fourth quarter on Tuesday. The consumer goods company expects a further decline this year in earnings and margins. Shares of the company were more than 10% down on Tuesday morning.
Q4 financial performance and future guidance
Clorox reported $97 million (78 cents per share) of net income versus the year-ago figure of $310 million ($2.41 per share). In the prior quarter (Q3), the NYSE listed firm had posted roughly $60 million of net loss.
On an adjusted basis, it earned 95 cents per share in the fourth quarter. The California-based company generated $1.802 billion of sales – a decline from $1.983 billion in Q4 of the previous year. According to FactSet, experts had forecast $1.906 billion of sales and $1.32 of adjusted EPS.
Clorox said its household and lifestyle sales tanked 8% and 3%, respectively, in the recent quarter. For fiscal 2022, it forecasts an up to 6% decline in sales and an up to 26% decline in adjusted EPS. The U.S. firm will invest roughly $500 million to enhance productivity and tap into eCommerce in the next five years.
Jim Cramer’s remarks on CNBC’s “Squawk on the Street”
According to Mad Money host Jim Cramer, Clorox’s earnings report was very disappointing. On CNBC’s “Squawk on the Street”, he said:
“Clorox is going up against these incredible comparisons because it was one of the most obvious winners in the pandemic, and it’s not bouncing back. It’s very disappointing.”
Cramer attributed the poor performance to higher costs and, more shockingly, a sharp decline in consumer demand. Clorox guided for up to $5.70 of EPS this year compared to the Street estimate that stands at a much higher $7.60.
“It’s horribly below estimates, and the margins are just terrible. I can’t sugar-coat this,” he added.
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