Clorox Lifts FY Profit Outlook

(RTTNews) - While reporting its results for the second quarter, Clorox Company (CLX) lifted its earnings outlook for the full year.

For the full year, the company now expects earnings to be between $5.52 and $5.92 per share, compared to the previous estimate of $5.17 and $5.42, reflecting the lapping of several one-time charges recorded in the year-ago period.

Adjusted earnings are now expected to be between $6.95 and $7.35, compared to the previous estimate of $6.65 and $6.90. The main change is to reflect a 25 to 45 cent net benefit from the expected incremental shipments related to the company's ERP transition.

The company now expects net sales to be down 1% to up 2%, including 1 to 2 points of benefit from incremental shipments related to the Enterprise Resource Planning (ERP) transition, which is expected to reverse in the front half of the next fiscal year.

Further, Clorox and P&G have jointly decided to wind down the Glad bags and wraps joint venture. It will end on January 31, 2026, and Clorox intends to acquire P&G's 20% interest in the venture at its termination.

Following the expiration of the joint venture, Clorox expects that the Glad business will retain the exclusive core intellectual property licenses contributed by P&G on a royalty-free basis for certain licensed products.