Why Clorox stock exploded today

stock clorox (160 5.62%) The consumer goods giant rose 5.6% on Friday after reporting strong quarterly results.

Clorox clears out reorganized inventory.

In the second quarter of fiscal 2024, which ended December 31, 2023, Clorox’s net sales increased 16% year-over-year to $1.99 billion and adjusted (non-GAAP) earnings more than doubled to $2.16 per share. . Analysts, on average, were expecting earnings of $1.10 per share and revenue of $1.8 billion.

Underlying Clorox’s tremendous growth has been a combination of a favorable price mix and high volumes as the company rebuilds its customer inventory following a widely publicized cyberattack targeting the company last August.

“We are able to rebuild our retailer inventory ahead of schedule, allowing us to resume merchandising and restore distribution,” added Clorox Chairman and CEO Linda Rendle. “While there is still more work to be done, we remain focused on delivering excellence in a challenging environment to drive revenue growth and rebuild margins.”

What’s next for Clorox investors?

For the full fiscal year 2024, Clorox also raised its outlook for net sales to decline in the low single-digit percentage range. This is an improvement over previous guidance for low to mid-single digits. Clorox now expects full-year adjusted earnings per share between $5.30 and $5.50, up from previous guidance of between $4.30 and $4.80 per share.

All in all, this was a simple win and raise that gave optimistic investors plenty to celebrate. Clorox stock is responding in kind today.