Clorox (CLX) shares surged 5.08% in after-hours trading on Thursday, following the release of its fourth-quarter earnings report that significantly exceeded analyst expectations. The consumer goods giant reported adjusted earnings per share of $2.87, handily beating the IBES estimate of $2.21.

The company's financial performance was robust across the board. Clorox posted quarterly net sales of $1.99 billion, surpassing the IBES estimate of $1.94 billion. This represents a 4.47% increase compared to the same period last year when sales were $1.903 billion. The strong top-line growth, coupled with improved profitability, contributed to the positive market reaction.

Despite the impressive Q4 results, Clorox provided a cautious outlook for fiscal year 2026. The company expects net sales to decline by 6% to 10% and projects adjusted EPS in the range of $5.95 to $6.30, below the IBES estimate of $6.48. This guidance includes a negative impact of 85-95 cents per share from the reversal of incremental shipments related to an ERP transition in FY25. While the future outlook appears challenging, investors seem to be focusing on the current strong performance, driving the stock higher in extended trading.