Lowering FY27 EPS On Margin Headwinds And Slower New Product Ramp

研报英文原文证据摘录

Lowering FY27 EPS On Margin Headwinds And Slower New Product Ramp

Household & Personal Care

The Clorox Company

TD SECURITIES (USA) LLC ESTIMATE CHANGES

June 22, 2026

Price: $95.80 (06/18/2026) Lowering FY27 EPS On Margin Headwinds

Price Target: $90.00 And Slower New Product Ramp

HOLD (2)

ESG SCORE: 57/100

Robert Moskow THE TD COWEN INSIGHT

646 562 1474

We lower our fiscal 2027 EPS estimate for Clorox to $5.80 compared to consensus of $6.22.

robert.moskow@tdsecurities.com

Our revision reflects the likelihood that core gross margins will decline sequentially in 1H

Sergio Matsumoto FY27 owing to sticky oil-related costs in packaging and other ingredients. In addition, retail

646 562 1339 tracking data indicates that new products have yet to generate the sequential improvement

sergio.matsumoto@tdsecurities.com

management expected.

Victor Ma

646 562 1306 Will Gross Margins Improve Now That Oil Costs Are Falling?

victor.ma2@tdsecurities.com

We see potential for some gross margin recovery in the second half of fiscal 2027 if oil remains

Jacob Henry, CFA below $80 a barrel. Success here will depend on Clorox pushing their suppliers to reverse

646 562 1380

surcharges that they put into place during the course of the Iran war.

jacob.henry@tdsecurities.com

What Is "Normalized" EPS Growth in FY27?

Seamus Cassidy

646 562 1319 Our fiscal 2027 EPS assumes a -10% decline on a normalized basis after adding $0.90 to the

seamus.cassidy@tdsecurities.com FY26 earnings base for the timing of shipments during last year's ERP conversion. Bulls on

Key Data Clorox believe that fiscal 2027 will enjoy an additional benefit from transitory costs that the

Symbol NYSE: CLX company incurred in fiscal 2026 to ensure customer service after the ERP conversion. We are