(Bloomberg) -- Clorox Co. raised its annual profit guidance after increased advertising helped the bleach maker fully regain the market share that it lost when a cyberattack disrupted production last year.
Earnings, excluding certain items, will be as much as $6.90 a share in the current fiscal year that runs through June, the company said Wednesday. That compares with a prior forecast of as much as $6.80. Analysts on average estimated $6.65. The company reiterated its guidance for both revenue and organic sales, which strip out currency moves and other items.
The results show that Clorox has been able to win back customers who switched to other brands when its products were out of stock because of the cyberattack. The company, which owns Fresh Step cat litter, reported a 31% jump in organic sales for the quarter ended Sept. 30, surpassing analysts’ projections.
The raised profit guidance was due in part to moderating costs for inputs such as soybeans and certain chemicals, a spokesperson said in an email.
Clorox’s stock rose 2.3% at 10:20 a.m. on Thursday in New York. Through Wednesday’s close, the shares had gained 9.8% this year, compared with a 22% increase for the S&P 500 Index.
Clorox also used discounts to lure back customers. That paid off for its health and wellness segment with its biggest unit boosting organic sales 38% and beating estimates.
Gross margin and earnings also surpassed analysts’ projections for the latest quarter.
Still, Clorox has said it’s facing increased competition along with cash-strapped shoppers, which will weigh on sales during its current fiscal year.
“We expect categories to be growing a bit slower given the consumer pressure and the competitive intensity we have seen,” Chief Executive Officer Linda Rendle said during a conference in September.
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