The company's quarterly earnings of $1.44 per share from continuing operations increased 11% year over year. Excluding the impact of sale of assets, quarterly earnings jumped 6.2% to $1.38 per share. Further, the bottom line surpassed the Zacks Consensus Estimate of $1.36.

The Clorox Company – Earnings Surprise | FindTheBest

Earnings benefited from enhanced sales and gross margin, partly offset by higher selling & administrative expenses.

Net sales advanced nearly 4% to $1,557 million, primarily driven by increased prices and robust volumes, partially offset by unfavorable currency effects. On a currency neutral basis, revenues increased 6% in the reported quarter. Moreover, sales of this Zacks Rank #2 (Buy) company outpaced the Zacks Consensus Estimate of $1,520 million.

During the quarter, volumes inched up 3%, aided by strength in the Cleaning, Household and International segments.

Backed by efficient cost savings, lower commodity costs and better pricing, partly offset by greater manufacturing and logistics expenses, Clorox's gross margin expanded 270 basis points (bps) to 45.6% in the quarter.

Revenue by Segment

Sales in the Cleaning segment improved 9% to $465 million, with a 7% increase in volumes. Volumes mainly benefited from strength witnessed in Home Care and Professional Products.

Household sales increased 4% to $580 million, with a 2% jump in volume, mainly aided by solid gains in Bags and Wraps.

Sales and volumes at the Lifestyle segment remained flat year over year, as greater shipments in Natural Personal Care were offset by weakness in Dressings and Sauces, and Water Filtration. Segment sales came in at $245 million.  

In the International business segment, Clorox's sales remained flat, at $267 million, reflecting negative currency impact. On a currency-neutral basis, sales increased 11% year over year. However, volumes were up 2% backed by gains in Latin America and Canada, somewhat offset by lower shipments in Europe.

Financials