Clorox slides after disappointing results, downbeat sales forecast
06/05/2025 15:12
** Shares of Clorox CLX.N down 3.6% at $133.38, a nine-mth low, after cleaning product maker's fiscal Q3 results disappointed Wall Street and it cut 2025 sales outlook ** Oakland, California-based Pine-Sol parent late Mon posted adj EPS of $1.45 on rev of $1.67 bln, shy of the $1.57 in earnings and $1.73 bln in rev anticipated by analysts, per LSEG ** Co trimmed annual sales forecast as consumer demand weakens amid economic uncertainty spurred by U.S. President Donald Trump's tariffs ** For fiscal 2025, it anticipates sales to be down 1% to flat, compared with its earlier target of down 1% to up 2% ** At least 6 brokerages cut their PTs reacting to the news, including JP Morgan, BofA Global Research and Morgan Stanley ** JP Morgan said it remains on the sidelines, pointing to expected pull forward benefit reversal in first half of fiscal 2026, continued high promotions in some categories ** BofA said new PT of $145 (down from $150) fairly balances CLX's near-term volume recovery amid increasingly challenged consumer backdrop against improved margin trajectory post-cyberattack ** Of 21 brokerages covering CLX, recommendation breakdown is 3 "strong buy" or "buy", 14 "hold" and 4 "sell"; median PT of $147 down from $165 a month ago - LSEG ** With move on the session, stock down ~18% YTD vs S&P 500 Consumer Staples sector's .SPLRCS 5% advance (Lance Tupper is a Reuters market analyst. The views expressed are his own) ((lance.tupper@tr.com 1-646-279-6380))