Upcoming AWS Coverage on Newell Brands Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 17, 2017 / Active Wall St. announces its post-earnings coverage on The Clorox Co. (NYSE: CLX). The Company posted its second quarter fiscal 2017 (Q2 FY17) results on February 03, 2017. The Oakland, California-based Company's net sales reported a 4.5% y-o-y growth, meeting market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Clorox's competitors within the Housewares & Accessories space, Newell Brands Inc. (NYSE: NWL), reported its Q4 and full year 2016 financial results on February 06, 2017. AWS will be initiating a research report on Newell Brands in the coming days.

Today, AWS is promoting its earnings coverage on CLX; touching on NWL. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

In Q2 FY17, Clorox reported net sales of $1.41 billion which came in above $1.35 billion in the year-ago same period. Net sales numbers for the reported quarter met market consensus estimates of $1.41 billion. Excluding foreign translation loss, the Company's Q2 FY17 currency-neutral net sales growth was 6.4% y-o-y. Furthermore, the Company reported an 8% y-o-y volume growth, reflecting increases in all reportable segments.

The consumer products maker posted net earnings of $149 million, or $1.14 per diluted share, in Q2 FY17, compared to $149 million, or $1.13 per diluted share, reported in Q2 FY16. The Company's Q2 FY17 net earnings included a $0.11 per share one time impairing certain assets charge related to the Aplicare business. Wall Street had expected the Company to report adjusted net earnings of $1.22 per diluted share.

Operational Metrics

During Q2 FY17, Clorox's gross profit rose to $629 million from $600 million in the prior year's same quarter. Driven by the benefits of cost savings and international price increases, which was partially offset by higher manufacturing and logistics costs, the Company's gross margin increased 10 basis points to 44.7% in Q2 FY17 from 44.6% in the year ago same quarter. The Company's selling and administrative expenses increased to $197 million in Q2 FY17 from $191 million in Q2 FY16. Furthermore, the Company's spent $128 million on advertisements in Q2 FY17 compared to $126 million in Q2 FY16.

Segment Results

During Q2 FY17, Clorox's Cleaning segment's net sales grew 3% to $469 million from $457 million in Q2 FY16. Meanwhile, the segment reported a 10% volume growth in Q2 FY17. However, the segment's pre-tax earnings from continuing operations fell to $104 million in Q2 FY17 from $123 million in the year ago same quarter.

Net sales at Household segment rose 12% from $375 million in Q2 FY16 to $421 million in Q2 FY17 with 11% y-o-y volume growth. Furthermore, the segment's pre-tax earnings from continuing operations improved 6% during Q2 FY17 to $71 million, from $67 million in the last year comparable quarter.

The Company's Lifestyle segment reported net sales of $260 million in Q2 FY17, a growth of 4% from $251 million recorded in the prior year's same quarter. The segment's volume also grew 5% y-o-y in the reported quarter. Additionally, the segment's pre-tax earnings from continuing operations rose to $77 million in Q2 FY17 from $72 million in the previous year's same period.

Clorox's International segment's net sales fell 2% during Q2 FY17 to $256 million, from $262 million in Q2 FY16. However, on currency-neutral basis, sales growth was 8% y-o-y with 2% y-o-y volume growth in Q2 FY17. Moreover, the segment's pre-tax earnings from continuing operations rose to $28 million in Q2 FY17 from $22 million in the prior year's same period.

Balance Sheet

As on December 31, 2016, the Company had cash and cash equivalents balance of $414 million, compared to $390 million in as on December 31, 2015. Furthermore, the Company's long-term debt was down to $1.39 billion as on December 31, 2016, from $1.79 billion as on December 31, 2015.

Dividend and Share Repurchase

In a separate press release on February 07, 2017, Clorox's Board of Directors announced a quarterly cash dividend of $0.80 per share, which will be payable on May 05, 2017, to stockholders of record as of the close of business on April 19, 2017.

Outlook

In its guidance for full year FY17, Clorox updated its net sales growth range to 3% to 4%. The Company's EBIT gross margin for FY17 is likely to grow by 25 bps to 50bps. Furthermore, diluted earnings for FY17 is now expected be between $5.23 per share and $5.38 per share with year-over-year growth in the range of 6% to 9%.

Stock Performance

At the closing bell, on Thursday, February 16, 2017, Clorox's stock climbed 1.31%, ending the trading session at $130.10. A total volume of 1.57 million shares were traded at the end of the day, which was higher than the 3-month average volume of 976.40 thousand shares. In the last month and previous three months, shares of the Company have advanced 8.31% and 14.70%, respectively. Moreover, the stock gained 9.12% since the start of the year. The Company's shares are trading at a PE ratio of 26.23 and have a dividend yield of 2.46%.

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SOURCE: Active Wall Street