Key Takeaways
- Shares reached a fresh 52-week low of $88.38, marking a 27.25% decline from year-ago levels
- Third quarter FY2026 earnings per share of $1.64 exceeded forecasts by $0.10
- The company lowered its full-year net sales forecast to reflect a decline of approximately 6%
- Goldman Sachs, UBS, Morgan Stanley, and Evercore ISI reduced their price objectives
- Analysts express reserved sentiment following the guidance revision
Shares of Clorox (CLX) tumbled to a new 52-week low on May 1, initially touching $91.00 before descending further to $88.38. The stock has shed 27.25% of its value over the trailing twelve months.
The decline followed the company’s April 30 release of third quarter fiscal 2026 results and a downward revision to its annual projections.
The quarterly performance showed strength in certain metrics. Adjusted earnings per share reached $1.64, surpassing the Street consensus of $1.55 by ten cents. Top-line revenue of $1.67 billion matched analyst expectations.
The forward-looking statements, however, painted a more challenging picture. Management now anticipates net sales will contract by approximately 6% for the full fiscal year 2026. This represents a meaningful departure from earlier projections.
The company also lowered its adjusted earnings per share guidance for the complete fiscal year to a range of $5.45 to $5.65, compared with the previous band of $5.95 to $6.30.
Shares declined roughly 2% in the immediate aftermath of the earnings announcement.
Analyst Firms Lower Price Objectives
The updated forecast prompted widespread target reductions among Wall Street research teams.
Goldman Sachs lowered its price objective to $83 from $94, explicitly referencing the guidance cut as the primary rationale.
UBS adjusted its target downward to $96 from $110 while maintaining its Neutral stance. Morgan Stanley similarly reduced its objective to $97 from $110, highlighting headwinds in specific product lines.
Evecore ISI brought its target down to $110 from $115, noting that third quarter performance benefited from the elimination of royalty obligations related to Glad products — a non-recurring advantage.
Valuation Metrics Present Complex Outlook
Clorox currently trades at a price-to-earnings multiple of 15.76x, which certain analysts consider reasonable relative to current earnings power. Data from InvestingPro indicates the shares may be trading below intrinsic value.
The GF Score assigns CLX a rating of 68 out of 100. Profitability metrics earn a solid 7/10 assessment, while growth indicators register only 1/10 — a notable weakness within the competitive consumer staples sector.
Financial strength receives a 4/10 rating, suggesting potential challenges related to leverage and cash generation.
Management highlighted that the GOJO acquisition should help mitigate some revenue pressure, though the overall message remained measured.
Insider transactions over the past year have been minimal — two purchase transactions and a single sale valued at approximately $1.86 million.
The company’s market capitalization currently stands near $11.66 billion, representing a substantial decrease from year-earlier levels.
The recent low of $88.38 establishes a new benchmark for shares that have experienced downward pressure throughout the current fiscal period.
