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Tag: CLX

  • The Clorox Co. (CLX) stock Collapse Premarket on Dismal Q2 Fiscal 2022 Results

    The Clorox Co. (CLX) stock Collapse Premarket on Dismal Q2 Fiscal 2022 Results

    On February 03, The Clorox Co. (CLX) declared its financial results for fiscal Q2 2022 along with a revised outlook. Consequently, the stock took a major hit in the premarket on Friday.

    In the previous trading session, the stock was slightly down by 0.99% at the closing price of $165.34. Following the announcement, the stock declined by 12.10% in the premarket to lose $20.00. Hence, CLX was trading at $145.34 in the premarket, at the time of writing.

    The consumer and professional products manufacturer, The Clorox Co. was founded in 1913. Currently, its 122.86 million outstanding shares trade at a market capitalization of $20.52 billion. CLX stock stands at a year-to-date loss of 5.17% while it lost 13.73% last year.

    CLX’s Fiscal Q2 2022

    The company’s fiscal Q2 2022 ended on December 31, 2021.

    In the fiscal Q2 2022, the company’s net sales went down by 8% year over year to $1.7 billion. This compares to a growth of 27% in the year-ago quarter.

    Moreover, CLX reported a gross margin decline of 1240 basis points in fiscal Q2 2022. Hence, the gross margin was 33% in the quarter against 45% in the year-ago period.

    Furthermore, the diluted EPS in fiscal Q2 2022 was $0.56 against $2.03 in the year-ago period. Thus, marking a decrease of 72% year over year. Additionally, the adjusted EPS was $0.66 with a decrease of 67% year over year.

    The company also reported a 65% decline in year-to-date net cash from operations to $222 million in the quarter.

    Fiscal 2022 Outlook

    For fiscal 2022, the company expects a decline of 1% to 4% in net sales and 750 basis points in gross margin.

    CLX also expects adjusted EPS to decline by 41% – 38% to $4.25-4.50 for fiscal 2022.

    CLX Rising Stars

    On January 28, NBA introduced a new format for the 2022 Clorox Rising Stars. Clorox Rising Stars will be played as a part of NBA All-Star 2022, on February 18, in Cleveland.

    Four seven-played teams will compete in a mini-tournament of three games, played to a final target score.

    The annual showcase of premier young talent will be televised by TNT at 9:00 PM ET.

    Other Developments

    On December 02, 2021, the company’s CFO Kevin Jacobsen participated in the Morgan Stanley Global Consumer & Retail Conference.

    On November 16, CLX declared a quarterly dividend of $1.16/common share with a record date of January 26, 2022. The dividend is payable by February 11, 2022.

  • The Three Top Consumer Stocks that should be on your Watch List

    The Three Top Consumer Stocks that should be on your Watch List

    The consumer stocks are mostlya long-term option for investors, with usually high dividend yields.

    Consumer stocks held up well last year, and on reasonable grounds. When the pandemic reached its peak in March, daily life product sales soared as people got panic with a potential threat of supply issues.

    Looking into this year’s probability of consumer stocks success, it’s expected that things would be better economically compared to that of 2020. Moreover, there is a favorable amount of research work going on vaccines, and Pfizer’s vaccine is already being utilized. So, overall, the health and economic condition seem to be getting better with time.

    For investors, the consumer stock market has minimal volatility and well-charted returns. That’s what Warren Buffet—the investor’s Guru believes. On top of that, many of the consumer staple stocks are great dividend stocks with high yields, as well. If you are interested in consumer stocks, here are the three top stocks for investment.

    Coca-Cola (KO)

    The leading beverage company across the globe, Coca-Cola (KO) is one of the big giants in the market. The largest guru shareholder in the company is Warren Buffet, who has around 9.31% stakes in the company. KO has a dividend yield of 3.30%, as we write this.

    With the go green campaign in the US, the company has finally completed the launch of drink bottles made out of 100% recycled plastic for North American markets. All the recycled bottles will be available in stores later this month, as the company moves one step further to its bigger goal.

    The company claims that their recycled bottles will help in reducing greenhouse gas emissions by 10,000 metric tons per year—across different large markets. Coca-Cola has the goal to achieve up to 50% of recycled materials worldwide by 2030.

    The company is expected to report low results in the fourth quarter of 2020. Though Coca-Cola surpassed third-quarter expectations on a 6% revenue decline. The company will see a difference in its sale this year, with the stores expected to remain open. While the lockdown in the same period last year had a larger impact on sales.

    Costco Wholesale (COST)

    Costco Wholesale (COST) is a US-based multinational firm that runs a chain of membership-only warehouse clubs. The company has several advantages over its retailers, and that’s mostly due to its membership model having quite a reliable customer base. The customer retention rate is approximately 90%, which is remarkable.

    The company receives most of its profits on membership fees. This allows the company offering rock-bottom prices on merchandise, making it difficult to compete—along with recession-proof, as well.

    Costco’s growth strategies and better price management, along with its penetration into the online market have improved its sales performance. Recently, the company reported upbeat sales with sequential growth over the past few months. The warehouses recorded 17.9% growth to $13.64 billion in net sales during Jan. 2021. While, the growth rate in the last three months was 12.3%, 15.1%, and 15.9% as of Dec., Nov., and Oct., respectively.

    So, it seems that Costco Wholesale (COST) is synchronizing well with the e-commerce market. This will be a big plus for the company to generate large revenue in the long-term.

    Clorox (CLX)

    Clorox (CLX) is a global manufacturer and marketer of consumer and professional products. The company has recently declared its quarterly dividend for the 52ndconsecutive year. The dividend to be paid to the shareholders of Clorox’s common stock will be $1.11 per share. While it will be paid on May 7, 2021, to stockholders as of record of the close of business on April 21, 2021.

    On Feb.4, the company also updated its fiscal second-quarter 2021 results. The quarterly sales soared to 20%, with growth in all three businesses for a third consecutive quarter. The grilling sales surged up to double digits, driven by high consumption. This shows a massive rise in in-home meal occasions—as people are spending more time at home.

    Clorox (CLX) is growing with continued momentum. The company expects to keep up the pace in the coming quarters, as well.

  • The Top 3 Consumer Staples Stocks to Watch For in 2021

    The Top 3 Consumer Staples Stocks to Watch For in 2021

    The environment is challenging but there are some consumer staple firms with an upper hand in the market.

    The consumer staples firms are the basic necessity product makers or more likely which consumers use on daily basis. Though pandemic has impacted consumer staples companies, you rely on their products every single day.

    Consumer staples include daily life essentials such as food and beverages, cosmetics, cleaning, and personal hygiene products, tobacco, alcohol, and other daily use items. In the later period of 2020, the stock market made a promising recovery—reflecting a better and retrieval time for companies, this year.

    There are some well-positioned stocks in the market regardless of the unprecedented economic conditions. Moreover, the Biden government is expected to make changes that will take some burden off the economy. So, let’s have a look at consumer staples stocks to watch for in 2021.

    Procter & Gamble (PG)

    Procter & Gamble (PG) is one of the most decorated multinational consumer goods corporations. In tough COVID circumstances, the company kept on running its business with smoothness.

    In the recent earnings report, the CFO of Jon Moeller highlighted that they continued the strong momentum in Q4 2020, which PG has created over the past few years—top line, bottom line, and cash. The company reported strong sales, increasing profit, and cash flow.

    P&G kept up the good results despite the slowing of the demand from the lockdowns. The organic sales soared over 12% year-over-year in the US. The company ended the quarter on a high note, mainly due to the rising demand for home cleaning and maintenance products.

    Furthermore, Procter & Gamble (PG) stock has a big edge, with its dividend delivery. The company will issue a $0.79 per share quarterly dividend in Feb., making it’s the 131st consecutive year of paying dividends in 2021.

    Altria Group (MO)

    After a bumpy ride in 2020, Altria (MO) is well-positioned to have a decent run in 2020. Thanks to its strategic investments in key growth markets. Altria is a tobacco company that is behind some of the famous brands including Marlboro cigarettes, Black & Mild cigars, Copenhagen, and Skoal chewing tobacco.

    Recently, the company posted promising Q4 results—stronger quarterly sales. The quarterly net revenues soared 4.9% year-on-year to $6.3 billion, surpassing analysts’ estimates of $5 billion. While the revenues for the full-year 2020 jumped by 4.2% to $26.1 billion.

    Whereas, the full-year earnings grew to $2.40 per share. Upon the recent earnings report, analysts have given the forecast for the fiscal year 2021. The company is projected to record revenues up to $21.2 billion, while the statutory earnings per share are forecasted to jump 91% to $4.59. So, Altria Group (MO) is well-established to continue a strong quarterly performance this year—ultimately driving the stock.

    Clorox (CLX)

    The Clorox Company (CLX) is the US-based producer and marker of consumer products. Recently, CLX stock has been on the downward side, but it has rallied well in the last year amid the pandemic crisis.

    The company is scheduled to report its Q2 FY21 outcomes on February 4. Clorox expects strong growth and an increase in revenue and earnings in Q2. As per the Zacks Consensus estimate, the consumer product manufacturer is set to touch earnings of $1.69 per share. This will be almost a 15.8% rise from a year ago. While the revenues are anticipated to grow by 21.8% year-over-year to $1.76 billion.

    So, The Clorox Company (CLX) is set to pump is the earnings report gains the investors’ attention. Overall, CLX stock has a long-term potential with strong quarterly performances during the past year.