Here's Why Clorox Stock Is at Top of S&P 500 Gainers Friday

Clorox (CLX) shares jumped Friday to go nan apical performer successful nan S&P 500 aft nan institution known for its namesake bleach and disinfectants reported better-than-expected quarterly profits nan time before. Expanding gross margins and cost-reduction efforts helped nan supplier of user and master products execute 9% bottom-line maturation from nan year-ago period.

For its fiscal 4th fourth of 2024, which ended connected June 30, Clorox reported adjusted net per stock (EPS) of $1.82, exceeding nan consensus forecast of $1.54. Although nett income of $1.9 cardinal fell somewhat short of estimates calling for $1.97 billion, nan results reflected nan effect of Clorox's divestment of its Argentina operations.

Clorox guided for higher full-year fiscal 2025 EPS successful a scope of $6.55 to $6.80, topping analysts' projections.

Updates to Operating Model Underpin Margin Expansion

A alteration successful manufacturing, logistics, and commodity costs, arsenic good arsenic strategical cost-savings initiatives, helped Clorox grow its gross separator by 380 ground points year-over-year, contempt an uptick successful trade-promotion spending.

"We made beardown advancement arsenic we evolved our portfolio to accelerate profitable growth, completed nan implementation of our streamlined operating exemplary and precocious our integer transformation," said Clorox Chief Executive Officer (CEO) Linda Rendle.

Clorox believes that its more-efficient operating strategy will make yearly costs savings of astir $100 cardinal and let nan institution to innovate much quickly arsenic it adapts to shifting user behaviors.

Better Health Divestiture and Recovery From Cyberattack

In statement pinch its much streamlined approach, Clorox announced that it has entered into an statement to waste its Better Health Vitamins, Minerals, and Supplements business. The woody allows Clorox to attraction connected halfway areas of its portfolio, and nan institution said it believes nan transaction will thief thrust unchangeable growth. No financial position for nan waste were disclosed Thursday.

In different item from nan quarterly report, Clorox touted its advancement connected rebounding from a cyberattack that affected nan company successful precocious 2023, noting it has recovered astir of nan marketplace stock it mislaid arsenic a consequence of nan incident and restored its proviso chains.

Top Daily Performer successful S&P 500 connected Friday

Despite a important downdraft for awesome U.S. equities indexes connected Friday, Clorox banal added by precocious successful nan time 7%, turning successful nan strongest gains of immoderate banal successful nan S&P 500. Following Friday's gains, nan banal is trading successful affirmative territory for 2024.