Clorox Co. lowered its earnings outlook for the year as the company said earnings came in below expectations for the latest period amid lower-than-expected tax benefits.
The company now expects full-year earnings between $5.23 and $5.43 a share, compared with a prior range of $5.38 to $5.58 for its year that ends in June. The company said earnings would be dented by a smaller-than-anticipated tax benefit related to share-based payments to employees, as fewer stock options were exercised.
Clorox left its outlook for 2% to 4% sales growth unchanged.
The maker of a range of consumer products, including liquid bleach, disinfecting wipes and Glad trash bags, has seen sales climb in recent quarters amid favorable commodity costs and price increases. However, its bottom line has been dented recently by higher spending on advertising, and research and development. Spending in both categories increased in the September quarter compared with a year ago, but less so than in the June quarter.
Over all, Clorox posted a profit of $179 million, or $1.36 a share, up from $172 million, or $1.31 a share, in the prior-year quarter. Analysts surveyed by Thomson Reuters had forecast per-share earnings of $1.42 a share.
Revenue rose 4% to $1.44 billion. Analysts had projected revenue of $1.43 billion.
Shares, which have fallen 8.3% in the past three months, were inactive premarket.
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(END) Dow Jones Newswires
November 02, 2016 08:15 ET (12:15 GMT)
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