Title
Earning Preview: Clorox revenue expected to increase by 0.88%, and institutional views are Neutral-to-Cautious.Abstract
The Clorox Company will report fiscal second-quarter results on February 03, 2026 Post Market, and this preview consolidates current estimates and recent institutional commentary to frame expectations for revenue, margins, adjusted EPS, and segment dynamics likely to drive the near-term share-price reaction.Market Forecast
Consensus compiled from the latest forecasts points to The Clorox Company generating revenue of $1.64 billion for the current quarter, up 0.88% year over year, with adjusted EPS of $1.43, up 1.74% year over year, and EBIT of $258.34 million, up 4.23% year over year; gross margin and net margin outlooks have not been explicitly provided in the collected estimates. Forecast commentary implies stable top line supported by pricing carryover and improved operating efficiency, with earnings leverage mainly tied to cost discipline and mix.The main business is expected to see normalized demand and balanced promotional intensity, retaining pricing while focusing on productivity to sustain margins. The most promising segment in the near term is International, which delivered $253.00 million last quarter; year-over-year data for this segment was not disclosed within the gathered period.
Last Quarter Review
In the previous quarter, The Clorox Company reported revenue of $1.43 billion, a gross profit margin of 41.71%, GAAP net profit attributable to the parent company of $80.00 million, a net profit margin of 5.60%, and adjusted EPS of $0.85, with revenue down 18.90% year over year and adjusted EPS down 54.30% year over year.A key highlight was resilient execution versus expectations: adjusted EPS exceeded estimates by $0.06 and revenue surpassed consensus by $29.16 million, although net profit fell 75.90% quarter over quarter, underscoring ongoing normalization after recent disruptions and a less favorable comparison base. The main business delivered concentrated scale in Health & Wellness, which generated $565.00 million and accounted for 39.54% of group sales; year-over-year data for segment-level performance was not provided within the collected dataset.
Current Quarter Outlook (with major analytical insights)
Health & Wellness (Main Business)
Health & Wellness drove $565.00 million in revenue last quarter and remains central to top-line stabilization and near-term earnings cadence. Based on the current quarter’s consolidated forecasts, the company’s earnings profile is poised to benefit from cost control and a gradual normalization of fulfillment, which should support the segment’s gross margin resilience even without explicit margin guidance. Revenue expectations for the group at $1.64 billion suggest modest year-over-year growth, and with adjusted EPS at $1.43, management’s operational focus is likely to be on maintaining pricing integrity while calibrating promotions to protect brand equity and volume.Within Health & Wellness, unit economics hinge on input costs, manufacturing productivity, and mix of premium brands. As input-cost volatility eases, incremental productivity and logistics improvements should enable the segment to hold or expand contribution margins, especially if volumes recover in core categories. Execution discipline remains crucial because quarter-over-quarter volatility in net profit last quarter (-75.90%) highlighted the sensitivity of earnings to temporary dislocations; pivoting to steadier run-rates would enhance visibility and investor confidence. The recently announced agreement to acquire Gojo, the maker of Purell, for $2.25 billion on January 22, 2026–January 23, 2026 signals a strategic commitment to expanding hygiene adjacencies, with potential synergies in procurement, channel reach, and brand architecture. While timing and integration economics will determine the cadence of realized benefits, the strategic fit suggests incremental scale and capability in health and hygiene over time.
International (Most Promising Segment)
International posted $253.00 million last quarter, presenting an opportunity to diversify revenue and earnings streams across geographies and currencies. Near-term growth potential is anchored in distribution breadth and price architecture, which together can support mix and margins if local market elasticities remain manageable. The absence of segment-level year-over-year disclosures within the collected data limits quantification, yet International’s scale and diversification can mitigate domestic volatility and complement broader portfolio initiatives.On earnings mechanics, International performance often ties to currency translation, localized promotional cadence, and operational efficiency in manufacturing and logistics. The current quarter’s consolidated EBIT estimate of $258.34 million, up 4.23% year over year, indicates the group has some operating leverage expectations baked in; a proportion of that leverage can reasonably be supported by disciplined cost management and a tighter fulfillment model in overseas operations. If the International segment sustains route-to-market improvements and leverages brand equity without excessive discounting, its contribution to consolidated gross margin could be supportive, even though gross margin guidance was not explicitly provided. The medium-term opportunity lies in embedding consistent productivity programs and aligning pricing to local cost structures to protect margins while retaining volume.
Key Stock Price Drivers This Quarter
Three vectors appear central to the share-price reaction: revenue versus consensus, earnings power embedded in gross-to-EBIT conversion, and strategic capital allocation. With revenue expected at $1.64 billion, a small beat or miss can have an outsized sentiment impact because the prior quarter’s top-line decline of 18.90% year over year sharpened investor focus on stability and trajectory. Adjusted EPS guidance at $1.43 highlights margin execution as a determinant of valuation multiples; any disclosure indicating better-than-expected cost savings, favorable mix, or pricing endurance would likely be met with constructive reception.Operating leverage implies that gross margin health flows through to EBIT, which is forecast at $258.34 million; the magnitude of overhead absorption, supply-chain productivity, and promotions will influence how much revenue converts to earnings. Remarked quarter-over-quarter volatility in net profit last quarter underscores this sensitivity, so investors will watch whether normalized operations reduce fluctuation and lift visibility. Strategic capital allocation is also pivotal following the announcement to acquire Gojo for $2.25 billion on January 22, 2026–January 23, 2026, funded with debt. Even if the transaction’s closing and integration timeline extend beyond the current quarter, investor attention will center on leverage, interest expense trajectory, synergy capture, and earnings accretion timing. Clarity around integration plans and financial framework can help contextualize interim margin targets and calibrate expectations for fiscal-year progression.
Household and Lifestyle Supporting Dynamics
Household generated $362.00 million last quarter, and Lifestyle contributed $245.00 million, forming a complementary base to Health & Wellness and International. In the near term, volume normalization and targeted promotions are likely to define these segments’ path to steady growth, with the company balancing brand equity and shelf-price positioning. Modest revenue expansion this quarter, paired with guarded promotional intensity, can help preserve contribution margins, especially if input-cost pressures continue to ease and productivity programs capture further savings.From a performance perspective, Household and Lifestyle segments can add resilience during periods when demand patterns shift across categories, allowing overall portfolio balancing. If inventory health and fill rates remain solid, these segments may translate stable demand into predictable revenue streams, reducing overall volatility. While segment-level year-over-year data was not disclosed, management’s broader cost and mix discipline implied in the consolidated EBIT growth expectation provides some cushion for variability in these categories.
Cash Generation, Capital Structure, and Guidance Signals
Cash generation in the current quarter will be watched through the lens of operating margin conversion and working-capital efficiency, given last quarter’s net profit margin of 5.60% and gross margin of 41.71%. The degree to which adjusted EPS of $1.43 materializes alongside EBIT of $258.34 million will inform cash flow expectations and the company’s capacity to navigate integration costs if the Gojo transaction progresses. In the short run, clarity on leverage targets, debt structure, and interest expense assumptions will be relevant to earnings quality and valuation.Investors may pay close attention to any mid-quarter or near-report commentary that signals cadence of promotions, pricing durability, and input-cost trajectories. Any indication that cost normalization and mix are trending favorably should bolster the outlook for the remainder of the fiscal year. Conversely, if promotional intensity re-accelerates or if input-cost relief stalls, guidance may be tempered; in that scenario, disciplined productivity programs and targeted pricing architecture remain important for holding EBIT growth lines.
Analyst Opinions
Within the collected window from January 01, 2026 to January 27, 2026, the majority stance is neutral-to-cautious: the proportion of bullish versus bearish opinions is effectively 0.00% bullish to a 100.00% neutral/cautious consensus. An example of this posture is a January 2026 note in which RBC Capital maintained a Hold rating on The Clorox Company with a price target of $142.00. This stance aligns with the modest top-line growth and gradual earnings improvement implied by current quarter forecasts, and it underscores the view that investors should look for demonstrated progress on margin sustainment and operational steadiness before revising valuations materially.Neutral-to-cautious institutional commentary tends to emphasize two validation points for the upcoming print. First, the consistency of revenue relative to the $1.64 billion estimate is key, especially in light of last quarter’s 18.90% year-over-year decline; a positive surprise would indicate improving demand normalization and possibly better execution on supply and logistics. Second, the quality of earnings matters: with adjusted EPS expected at $1.43 and EBIT at $258.34 million, analysts are likely to parse how much of the earnings cadence stems from durable productivity and mix versus transitory cost tailwinds or lower promotional intensity. This helps frame the sustainability question that often drives multiple re-rating.
Institutional commentary also ties the outlook to capital allocation and strategic moves, notably the announced $2.25 billion Gojo transaction on January 22, 2026–January 23, 2026, which expands the company’s presence in health and hygiene. While neutral ratings reflect caution around integration timing and leverage, they also acknowledge the strategic rationale and potential synergies—procurement scale, brand adjacency, and channel reach—that could support long-term earnings power. To that end, clarity on financing costs, synergy milestones, and integration schedule can shift sentiments within the neutral band by reducing uncertainty and quantifying accretion pathways. In the interim, a clean execution on the quarter—stable revenue, disciplined cost management, and credible commentary about margin resilience—would be consistent with the neutral consensus and may provide a foundation for future upgrades if delivery proves repeatable.
Overall, the institutional majority view suggests that near-term share-price dispersion will hinge on tangible progress in revenue stability and margin conversion rather than bold pivots in strategy or dramatic macro assumptions. The Clorox Company’s ability to meet or slightly exceed current-quarter estimates, while outlining pragmatic steps for integrating the pending hygiene acquisition and managing balance-sheet metrics, would validate the neutral posture and could nudge the narrative toward cautious optimism over subsequent quarters. Conversely, any slippage versus the $1.64 billion revenue or $1.43 adjusted EPS markers would likely reinforce the Hold-style positioning until more concrete evidence of sustainable acceleration emerges.
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