Clorox Lifts FY18 Earnings View Above Market; Backs Sales Growth Forecast

(RTTNews) - Clorox Co. (CLX), a manufacturer of consumer and professional products, Friday raised its fiscal 2018 earnings view for new tax reform law. Clorox now anticipates fiscal year 2018 earnings per share from continuing operations to be in the range of $6.17 to $6.37, which includes an updated assumption for a fiscal year benefit estimated to be 70 cents to 75 cents from tax reform, partially offset by lower gross margin.

The company previously anticipated fiscal year 2018 earnings per share from continuing operations to be in the range of $5.47 to $5.67.

On average, 18 analysts polled by Thomson Reuters expect earnings of $6.16 per share for the year. Analysts' estimates typically exclude special items.

The company continues to expect 1% to 3% sales growth for the year, reflecting a reduction of nearly 1 point in the fiscal year from the company's sale of the Aplicare business. The company's fiscal year sales outlook also reflects the continued expectation of 3 points of incremental benefit from product innovation.

Gross margin is now expected to decrease modestly as a result of higher input costs related to commodities and further tightening of the transportation market.

Chairman and CEO Benno Dorer, said, "We're very pleased that halfway through the fiscal year, we're on track to achieve our sales outlook. Looking at the balance of the fiscal year, we're staying the course with our 2020 Strategy, with continued investments to deliver superior consumer value behind robust innovation that differentiates our products and brands, and digital marketing that engages consumers online."