Clorox raises FY24 adjusted EPS view to $5.30-$5.50 from $4.30-$4.80

FY24 consensus $4.63. Net sales are now expected to be down low single digits, updated from prior view of down mid-to high single digits to reflect the progress the company has made in the second quarter as well as the raise in expectations for the second half of the fiscal year, partially offset by 5 points of unfavorable foreign exchange rates primarily due to the devaluation of the Argentine Peso. FY24 consensus $7.01B. This compares to the previous expectation of net sales that are down mid- to high single digits. Gross margin is now expected to be up about 200 basis points, reflecting the combined benefit of pricing actions, cost savings and supply chain optimization, partially offset by supply chain inflation and the impact from the cyberattack. This compares to the previous expectation of about flat. Selling and administrative expenses are now expected to be between 16% to 17% of net sales, including about 2.5 points of impact related to investments to enhance the company’s digital capabilities, implementation of the streamlined operating model and expenses resulting from the cyberattack. This compares to the previous expectation of about 16% of net sales. The company’s effective tax rate is now expected to be between 22% and 23%, compared to the previous expectation of about 23% to 24%.