Clorox Q3 Adj. Profit Beats View, But Lowers 2014 Outlook - Quick Facts

(RTTNews) - Consumer products company Clorox Co. (CLX) reported that its third-quarter net earnings rose to $137 million or $1.04 per share from $133.00 million or $1.00 per share in the same quarter last year.

Earnings from continuing operations for the quarter increased to $139 million or $1.05 per share from $134 million or $1.00 per share in the year-ago quarter.

Excluding the negative impact of $0.13 per share related to an effective currency devaluation in Venezuela, adjusted earnings per share for the latest quarter were $1.18. On average, analysts polled by Thomson Reuters expected the company to report earnings of $1.08 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter declined 2 percent to $1.39 billion from $1.41 billion in the prior-year quarter, primarily due to the impact of unfavorable foreign currency exchange rates and higher trade promotion spending, partially offset by the benefit of price increases and favorable mix. Analysts had a consensus revenue estimate of $1.43 billion for the quarter.

On a currency-neutral basis, sales for the quarter grew 1.3 percent.

Looking ahead to fiscal 2014, Clorox now anticipates earnings per share from continuing operations in a range of $4.25 to $4.35, and sales to decline slightly from the prior year. On a currency-neutral basis, the company now anticipates sales growth of about 2 percent for the fiscal year.

Earlier, the company forecast earnings in a range of $4.40 to $4.55, excluding Venezuela devaluation, and sales growth in a range of 1 to 2 percent. On a currency-neutral basis, the company had forecast sales growth of 3 to 4 percent.

Street expects the company to earn $4.45 per share for the year on 1.4 percent increase in revenues to $5.70 billion.

Steve Robb, Chief Financial Officer of Clorox said, "We've updated our fiscal year outlook to reflect a negative full-year impact of about 15 cents from the recent Venezuela currency devaluation."

For fiscal 2015, Clorox provided initial outlook for earnings per share from continuing operations in a range of $4.35 to $4.50 and sales to be about flat. On a currency-neutral basis, the company anticipates sales growth in a range of 1 percent to 3 percent for the fiscal year.

Analysts expect the company to report earnings of $4.75 per share for the year on 2.6 percent increase in revenues to $5.85 billion.