The Clorox Company Just Recorded A 24% EPS Beat: Here's What Analysts Are Forecasting Next

The Clorox Company (NYSE:CLX) just released its second-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.7% to hit US$1.7b. Clorox also reported a statutory profit of US$1.54, which was an impressive 24% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Clorox

Taking into account the latest results, Clorox's 18 analysts currently expect revenues in 2025 to be US$7.13b, approximately in line with the last 12 months. Per-share earnings are expected to bounce 57% to US$5.82. In the lead-up to this report, the analysts had been modelling revenues of US$7.05b and earnings per share (EPS) of US$5.49 in 2025. So the consensus seems to have become somewhat more optimistic on Clorox's earnings potential following these results.

There's been no major changes to the consensus price target of US$164, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Clorox at US$189 per share, while the most bearish prices it at US$138. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 1.0% annualised decline to the end of 2025. That is a notable change from historical growth of 1.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Clorox is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Clorox following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$164, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Clorox going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Clorox that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.