Clorox Q4 Earnings Preview: Can the Household Goods Giant Regain Its Footing?

Clorox (NYSE: CLX), the maker of its namesake bleach, Glad bags, and Burt's Bees products, is set to release its fiscal fourth-quarter earnings after the market closes on Tuesday. The report comes at a pivotal moment for the consumer staples giant, which has been working to rebuild momentum following a significant cyberattack in 2023 that disrupted operations.

Last quarter, Clorox managed to surpass revenue expectations by 2%, posting $1.43 billion, though that figure represented a steep 18.9% year-over-year decline. The company also delivered a notable beat on EBITDA estimates. For the upcoming report, Wall Street anticipates revenue of $1.64 billion, a milder year-over-year decrease of 2.6%, and adjusted earnings per share of $1.43. Analyst estimates have remained largely steady over the past month, suggesting expectations for a stable quarter.

The broader household products sector has shown resilience. Peer Colgate-Palmolive recently reported Q4 revenue growth of 5.8%, exceeding estimates, while Procter & Gamble posted a 1.5% sales increase, meeting expectations. Sector stocks have risen an average of 8.7% over the past month, with Clorox shares climbing 11.3% in that period. The current average analyst price target for CLX is $120.41, above its recent trading price near $112.81.

However, Clorox carries a mixed track record into the earnings call, having missed revenue estimates in three of the last eight quarters. Investors will be scrutinizing management's commentary on volume trends, pricing power, and the full financial impact of last year's cyber disruption. The company's ability to navigate ongoing cost inflation while protecting market share will be key to sustaining its recent stock momentum.

Michael Torres, Portfolio Manager at Horizon Wealth: "The guidance will be everything. The quarter itself is likely a transitional one. The market needs to hear a credible path to restoring pre-incident margins and steady, low-single-digit organic growth. The peer performance from Colgate and P&G sets a reasonable benchmark."

Sarah Chen, Retail Analyst at ClearView Insights: "There's cautious optimism. The 11% run-up feels like it's pricing in a clean recovery, but the consumer environment is fickle. Any hint of market share loss to private label or weaker-than-expected guidance on the recovery timeline could trigger a sharp pullback."

David R. Miller, Independent Market Commentator: "Enough with the cyberattack excuse. It's been quarters. This is a fundamental story now—can they innovate and compete, or are they just a dividend stock in decline? The stock pop feels speculative, not earned. I need to see real top-line growth, not just less-bad declines."

Lisa Park, Long-term Shareholder: "As a dividend investor, I'm watching for confirmation that the payout ratio remains sustainable. The brand portfolio is strong, and the recovery seems on track. I'm more interested in their long-term strategy for brand investment than in one quarter's noise."