Clorox (CLX), Take-Two (TTWO) stocks dip after earnings update

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Clorox (CLX), Take-Two (TTWO) stocks dip after earnings update

 Clorox (CLX), Take-Two (TTWO) stocks dip after earnings update
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Summary

  • Clorox’s stock plunged over 10%, Take-Two declined 9% on Tuesday morning.
  • Clorox reported its fiscal full-year 2021 results, which missed its earlier estimate.
  • Take-Two delayed the release schedule of two of its core titles to later in fiscal 2022.

The Clorox Company (NYSE: CLX) stock plunged more than 10 percent on Tuesday morning after it posted a disappointing fiscal full-year 2021 result. Take-Two Interactive Software, Inc. (NASDAQ: TTWO) also declined over 9 percent despite better-than-expected fiscal first-quarter results as it announced a delay in releasing some of its core titles.

Clorox’s FY’21 results miss estimates

In the full fiscal year ended June 30, the consumer and professional products maker reported a 9 percent year-over-year growth in sales to US$7.34 billion, which was below its expectation of 10 percent to 13 percent growth.

The company’s diluted EPS fell 24 percent year over year to US$5.58, while adjusted EPS dropped 2 percent to US$7.25. It had expected diluted EPS and adjusted EPS to grow up to 16 percent and 4 percent, respectively, year over year.

Clorox attributed the sales growth to higher shipments across all reportable segments. However, higher manufacturing, logistics and commodity costs pulled down gross margin by 200 basis points to 43.6 percent.

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In the fourth quarter of fiscal 2021, Clorox saw its sales grow 9 percent year over year to US$1.80 billion. Sales in the health and wellness segment, which includes cleaning, professional products, vitamins, minerals and supplements, were down 17 percent. Household segment that includes bags and wraps, grilling and cat litter, registered 8 percent decrease in sales.

Diluted EPS fell 68 percent year over year to 78 cents and adjusted EPS declined 61 percent to 95 cents.

Meanwhile, the California-based company anticipates fiscal 2022 sales to decrease in the range of 2 percent to 6 percent year over year. EPS is expected to decline up to 9 percent to the range of US$5.05 to US$5.35. Adjusted EPS is projected to drop up to 26 percent to between US$5.40 and US$5.70.

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Take-Two Interactive beats Q1’22 estimate, delays title release

Take-Two Interactive is a video gaming company, which owns popular publishers including Rockstar Games, 2K and Private Division.

The New York-based company saw its net revenues decline 2 percent year over year to US$813 million during the fiscal first quarter ended June 30 as net bookings declined 29 percent to US$711.4 million. Net income jumped 72 percent to US$152.3 million, or US$1.30 per share.

Earlier, Take-Two was projecting its net revenue in the range of US$730 million to US$780 million. Net income was expected in the range of US$116 million, or US$1, to US$129 million, or US$1.10.

However, the company pushed the release of its titles, including two core ones, to later in fiscal 2022 from its previous schedule.

Take-Two, while reiterating its previous estimate for full fiscal 2022, said it anticipates fiscal second-quarter net revenue to come in the range of US$740 million to US$790 million. Net income is projected between US$41 million, or 35 cents per share, to US$53 million, or 45 cents per share.

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Share performance

Clorox has a market capitalization of US$19.99 billion and a P/E ratio of 25.30. Its stock lost 19.67 percent year to date. The share price was between US$159.32 and US$239.87 in the last 52 weeks. As of 10:42 am ET, Clorox shares were trading at US$160.76, down 11.28 percent.

Take-Two’s market cap totals US$18.25 billion. It has a P/E ratio of 34.08. The stock is down 24.30 percent this year and traded in the range of US$151.00 to US$214.91 during the last one-year period. Take-Two’s shares were trading at US$156.75, down 9.50 percent at 10:42 am ET.

Please note: The above constitutes a preliminary view, and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

The reference data in this article has been partly sourced from Refinitiv.

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