The Clorox 2025 Q3 Earnings Misses Targets as Net Income Swings 482% Positive

The Clorox Company (CLX) reported its fiscal 2025 Q3 earnings on May 05th, 2025. Despite the company's efforts, Clorox fell short of analysts’ expectations, reporting quarterly earnings of $1.45 per share, which missed the consensus estimate of $1.57. Revenue also disappointed with a figure of $1.67 billion, below the expected $1.73 billion. The company adjusted its fiscal year revenue outlook to a range of $7.02 billion to $7.09 billion, which is below the $7.1 billion estimate. Despite these challenges, Clorox remains committed to maintaining its market position and profitability through strategic initiatives.

Revenue
In fiscal Q3 2025, Clorox's total revenue was $1.67 billion, marking an 8% decrease from the previous year. The Health and Wellness segment led the revenue with $630 million, while the Household segment contributed $469 million. The Lifestyle segment reported $306 million, and the International segment added $263 million to the total revenue.

Earnings/Net Income
Clorox returned to profitability in 2025 Q3, achieving earnings per share (EPS) of $1.51, a reversal from a loss of $0.41 per share in 2024 Q3. The net income saw a positive swing to $191 million from a net loss of $50 million in the previous year. The EPS shows robust recovery, reflecting the company's resilience.

Price Action
The stock price of The Clorox has edged down 0.58% during the latest trading day, has edged down 0.28% during the most recent full trading week, and has dropped 6.25% month-to-date.

Post Earnings Price Action Review
Clorox's stock performance following earnings reports has varied over the past five years. The backtest indicates that while short-term momentum post-earnings is sometimes positive, with a 3-Day win rate of 50%, it tends to diminish over longer periods, with a 10-Day win rate of 45% and a 30-Day win rate of 35%. This pattern suggests that initial investor enthusiasm often fades, leading to price reversals or consolidation. Revenue, net income, and EPS are pivotal metrics that influence investor sentiment and market dynamics. While positive surprises can bolster confidence and drive stock appreciation, negative surprises can exert downward pressure. Overall, the 30-Day return post-earnings is negative at -1.80%, highlighting mixed long-term performance. Investors should weigh these factors alongside other fundamental and technical analyses when evaluating CLX or similar stocks.

CEO Commentary
"Despite lower-than-expected sales amid challenging macroeconomic conditions, our fundamentals remain strong," said Linda Rendle, Chair and CEO. She highlighted that the company maintained overall market shares while achieving its tenth consecutive quarter of gross margin expansion, driven by cost savings and strategic divestitures. Rendle expressed confidence in Clorox's capability to navigate short-term challenges, emphasizing ongoing investments in trusted brands and the advancement of the long-term IGNITE strategy, while expecting organic sales growth and strong earnings growth for the year.

Guidance
The company anticipates continued slowdowns in consumer spending, as reflected in its updated outlook for the fourth quarter. Despite these challenges, Clorox expects to deliver organic sales growth and maintain strong earnings growth. The leadership remains optimistic about leveraging its strong brands and operational capabilities to navigate the dynamic environment ahead.

Additional News
Recently, Clorox announced a strategic partnership with a renewable energy firm to power its manufacturing facilities with solar energy, aiming to enhance sustainability efforts. Meanwhile, the company appointed a new Chief Marketing Officer to spearhead branding initiatives and drive growth across its diverse portfolio. In a bid to reward shareholders, Clorox has also declared a quarterly dividend, maintaining its commitment to shareholder returns despite current market challenges. These developments reflect Clorox's dedication to innovation, leadership, and value creation.