Clorox Misses Sales Targets, Swings to Net Loss
Analyst Downgrades Stock to Sell
Key Sales Gauge Falls, Competition Intensifies
Clorox CLX has reported disappointing fiscal third-quarter results, missing expectations for sales and posting a net loss.
According to the company, net sales grew by 16% to $199 billion, compared to a 1% increase in the previous year's quarter. However, a key sales gauge fell during the quarter.
TD Cowen analyst Robert Moskow has initiated coverage of Clorox with a Sell rating, citing the company's optimistic growth target of 3-5%.
"We believe the growth target of 3-5% is too optimistic," Moskow said. "This is due to heightened competition, as we were unable to supply merchandising events."
The company also posted a net loss of $60 million, compared to net earnings of $243 million in the same quarter last year.
Conclusion
Clorox's missed targets and disappointing results highlight the challenges faced by the company amid rising competition. Investors will be closely watching Clorox's next moves to address these issues and improve its performance.
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