Clorox Disappoints, Shares Fall
NEW YORK (
) --
Clorox
(CLX) - Get Report
stock has fallen after the company lowered its full-year guidance amid disappointing first-quarter earnings and revenue results.
Shares of Clorox have fallen 4.2% to $63.54 in midday trading.
Clorox lowered its full-year earnings outlook from continuing operations to $4.05 to $4.20 a share from a previously-expected $4.50 to $4.65 a share. "Management reduced fiscal year 2011 ongoing EPS from $4.50 to $4.65 to $4.05 to $4.20 to reflect the auto care divestiture and a lower operating outlook," Jefferies analyst Douglas Lane noted in an equity research report.
Sales growth was reduced to 0% to 2% from 2% to 4% sales growth.
The company reported first-quarter net earnings from continuing operations of $140 million, or 98 cents a share vs. $140 million, or 99 cents a share in the year-ago quarter. Analysts on average predicted earnings of $1.14 a share.
Including discontinued operations, net earnings were $216 million, or $1.52 a share, compared with $157 million, or $1.11 s share the same time last year.
The company said that during the quarter volume fell 2%, mainly due to lower shipments of Glad food-storage products and Scoop Away cat litter and difficult year-on-year comparisons given the strong shipments of disinfecting products in the year-ago quarter due to the H1N1 flu pandemic.
Net sales fell 2.8% to $1.3 billion, mainly due to volume softness, the impact of the Venezuela currency devaluation and higher promotional spending, Clorox said. The sales consensus estimate for the quarter was $1.38 billion.
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-- Written by Andrea Tse in New York.
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