Clorox (CLX) is expected to report softer-than-expected fiscal Q3 results mainly due to a decline in consumer sentiment since mid-February, RBC Capital Markets said Thursday in a research note.
The company is scheduled to announce fiscal Q3 results on Monday.
RBC said the expectations for the company's organic growth in fiscal Q3 have dropped to consumption levels. However, its sell-in is expected to remain higher than shipments for the quarter.
Inventory destocking at retail, driven by weaker category consumption, could likely affect the company, RBC said. The recently reported results from the company's peers remained mixed, which, together with consumption trends and RBC's channel checks, point to a difficult operating environment, it added.
Further, RBC expects that a negative impact from tariffs could force the company to report earnings towards the lower end of its guidance for the quarter.
RBC maintained its sector perform rating on the company's stock.
Price: 138.60, Change: -3.70, Percent Change: -2.60
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.