Clorox Now Expects Earnings Near the Low End of Its Forecast as Costs Rise. Should Dividend Investors Be Worried?
Key PointsThat business is adding to the fundamentals, but it has also substantially increased the debt load.
Clorox (CLX) reported its first-quarter fiscal 2027 results on Monday, showcasing double-digit growth despite increased costs. The company's net sales surged 33% year-over-year to nearly $1.91 billion, driven largely by the acquisition of Gojo Industries and a software upgrade. Attributable non-GAAP net income reached $190 million, or $1.55 per share.
Although earnings per share (EPS) fell short of analyst estimates, Clorox reaffirmed its annual guidance for fiscal 2027, projecting 13-14% sales growth and an adjusted EPS of $5.70-$6. The company's long-term debt increased by 60% year-over-year to $4 billion, mainly due to the $2.25 billion Gojo acquisition. Clorox's dividend, now at 5.6%, remains high and has been raised for 49 consecutive years, positioning the company for Dividend King status.
Despite challenges from higher commodity costs and transportation expenses, Clorox's operating cash flow surged 54%, indicating its ability to fund continued dividend increases.
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