Clorox shares plummet after warning cyberattack would impact quarterly results

Takeaways

Clorox warned that a cyberattack in August would have a significant negative impact on its quarterly results.
The cleaning products maker said it would have no net profit per year. share, a loss of $0.40, and that its sales would be down 25%. % to 28%.
Clorox shares fell in early trading Thursday to their lowest level since 2018.

Shares of Clorox (CLX) plunged in early trading Thursday after warning that the effects of a cyberattack on the company would have a significant impact on the results of the first quarter of the 2024 fiscal year recently ended in September.

The manufacturer of bleach and other cleaning products of the same name reported that its net sales would be 25% to 28% lower than a year ago. It said organic sales would decline 21 to 26 percent, down from its earlier expectations of mid-single-digit percentage growth.

Clorox also now expects no network profit per share to a loss of $0.40 per share during the period. Analysts had estimated earnings per share (EPS) at $1.25. It added that gross profit was negative, contrary to its earlier forecast of an increase.

The company explained that the cyberattack it first reported on August 14 caused a “large-scale disruption” to its operations, which included delays in order processing and “significant product outages.” It noted that shipment and consumption trends were consistent with forecasts prior to the attack.

Clorox said it believes it will experience the effects of the disruption, but to a lesser extent, in the current quarter. The company is assessing the impact in fiscal 2024 and beyond.

The hackers who hacked the Clorox system are suspected of belonging to the same group that recently attacked casino operators MGM Resorts International (MGM) and Caesars Entertainment (CZR).

Clorox shares fell to their lowest level in more than five years after the news and were down 8% as of noon ET. THURSDAY.