Clorox Misses Q3 Estimates, Analysts Lower Targets

Clorox reported third-quarter results that missed both earnings and revenue estimates, posting an EPS of $1.45 and sales of $1.67 billion as consumer spending slowed and retailers reduced inventory. Analysts from Evercore ISI and Goldman Sachs lowered their price targets to $140 and $134, respectively, and cut earnings forecasts, citing persistently flat or declining organic sales and increased competition from value brands. Despite these challenges, Clorox's gross margin improved to 44.6% thanks to cost savings and divestitures, and management reaffirmed its focus on organic sales and earnings growth while updating guidance to reflect continued slowdowns and external pressures like tariffs. The company continues to hold market share and invest in its brands, expressing confidence in its long-term strategy despite near-term headwinds. Clorox shares have fallen about 14% year-to-date, underperforming the broader market, and analysts remain cautious about the company's ambitious sales targets amid a sluggish consumer landscape. The company's future performance remains dependent on its ability to manage weak demand and inventory adjustments in the coming quarters.