(Bloomberg) -- Clorox Co. rose in late trading after the maker of bleach and charcoal briquettes posted profit that outpaced market estimates, despite a decline in sales.
Earnings per share, excluding some items, of $1.82 exceeded expectations in the fiscal quarter ended June 30, helped by lower manufacturing and logistics costs. The company expects that measure to be in a range of $6.55 to $6.80 in the current fiscal year, Clorox said, also better than the average analyst estimate.
The shares rose 4.4% to $140 in late trading in New York. Through Thursday’s close, Clorox had lost 5.9% this year, compared with a 14% gain for the S&P 500 Index.
The bleach maker is wringing more profit out of lower sales, offsetting the sting of losing market share and retail shelf space last year due to a cyberattack that idled factories last year. The company said its earnings result in the quarter was helped by higher gross margin, a measure of profitability, and lower selling and administrative expenses.
Clorox said it has fully restored supply and distribution, while also recovering nearly all of its market share losses from the hack. The company expects to return to volume growth in its current fiscal year, Chief Executive Officer Linda Rendle said in the earnings statement.
Organic sales, which strip out the effect of currency volatility and other items, fell 3% in the three months ended June 30, the company said. Analysts estimated a nearly 1% decline, according to the average compiled by Bloomberg. The company expects net revenue this year to be in a range of flat to down 2%.
Clorox also plans to sell its vitamins and supplements business, including its manufacturing and distribution facilities, to Piping Rock Health Products LLC. The deal, which will include a one-time charge of up to $134 million from a loss on the sale, is expected to close in the current quarter.
(Updates headline and first paragraph and updates share trading)
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