Clorox’s quarterly sales surge 15% as Coronavirus fuels demand for cleaning products

The Clorox Company (NYSE: CLX) released its earnings report for the fiscal third quarter on Friday that showed a 15% increase in its sales. The company attributed the jump in sales to its cleaning products that were greatly in demand due to the Coronavirus pandemic.

Clorox also upgraded its financial guidance for 2020 on Friday. The company was reported around 3.6% up in premarket trading.

Clorox’s Q1 financial results versus analysts’ estimates

According to Refinitiv, experts had forecast Clorox to print £1.36 billion in revenue in the third quarter. In terms of earnings per share, they had estimated £1.33 per share. In its report on Friday, Clorox topped both estimates posting £1.42 billion in revenue in Q3 as the company made a significantly higher £1.51 of earnings per share.

At £192 million, Clorox’s net quarterly income came in stronger than £149 million in the same quarter last year. Its net sales were also reported 15% up while a broader 17% increase was noted in organic sales.

Clorox registered the widest jump in sales in its cleaning business that includes Pine-Sol, disinfectant wipes, etc., at 32% in the third quarter. This was followed by its lifestyle segment that offers Brita water filters and Hidden Valley Ranch, posting a 10% growth in sales in the recent quarter.

Dietary supplements, on the contrary, saw lower than expected sales in Q3 ascribed to the COVID-19 driven supply disruptions.

On the international sales front, the company recorded an 11% increase in quarterly sales. Clorox’s household segment that includes Fresh Step cat litter and Glad trash bags reported the lowest increase in quarterly sales at 2%.

Clorox’s financial guidance for fiscal 2020

For the full year, the company said that it now expects to make £5.35 to £5.51 of earnings per share. Clorox also expects a 6% to 8% growth in its organic sales. Earlier this year in February, it had estimated a lower £4.87 to £4.99 of earnings per share and a 2% growth in organic sales in 2020.

At £156 per share, Clorox is currently around 30% up year to date in the stock market. In 2019, on the contrary, the stock remained flat on average.

Clorox is currently valued at £19.52 billion and has a price to earnings ratio of 30.74.