Shareholders might have noticed that The Clorox Company (NYSE:CLX) filed its yearly result this time last week. The early response was not positive, with shares down 5.9% to US$123 in the past week. Revenues were US$7.1b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$6.52 were also better than expected, beating analyst predictions by 12%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Clorox after the latest results.
Taking into account the latest results, the 15 analysts covering Clorox provided consensus estimates of US$6.57b revenue in 2026, which would reflect a perceptible 7.6% decline over the past 12 months. Statutory earnings per share are expected to decline 10% to US$5.91 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.84b and earnings per share (EPS) of US$6.38 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
Check out our latest analysis for Clorox
Despite the cuts to forecast earnings, there was no real change to the US$138 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Clorox at US$189 per share, while the most bearish prices it at US$115. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Clorox's past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it's the idea that Clorox's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 7.6% to the end of 2026. This tops off a historical decline of 0.04% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.4% per year. So while a broad number of companies are forecast to grow, unfortunately Clorox is expected to see its revenue affected worse than other companies in the industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Clorox. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Clorox analysts - going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Clorox you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.