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