Clorox Co. (CLX, +1.21%) experienced a decline in shares during after-hours trading on Wednesday following a cybersecurity attack that took place over the summer. While the regular session closed with a modest gain of 1.2% at $131.83, after-hours trading saw shares drop by as much as 5%.
For the quarter ending on September 30, Clorox now projects a loss of 75 cents to 35 cents per share. On an adjusted basis, the estimated loss ranges from 40 cents to break-even per share. In comparison, the first quarter of the previous year had achieved sales of $1.74 billion. Clorox expects sales to decrease anywhere between 28% and 23%, with revenue projected to fall within the range of $1.25 billion to $1.34 billion.
Impact of Cybersecurity Attack
The recent cybersecurity attack, which was publicly disclosed in August, has caused significant disruptions to Clorox’s operations. Order-processing delays and substantial product outages have been among the consequences of this attack. Consequently, the company’s reduced outlook is primarily attributed to these impacts. The shipment and consumption trends witnessed prior to the cyberattack were taken into account when formulating Clorox’s earlier forecast.
Analysts’ Expectations
According to analysts surveyed by FactSet, the initial projection for first-quarter earnings stood at $1.29 per share on revenue of $1.77 billion. Clorox fell short of these expectations due to the consequences of the cyberattack.
Clorox had previously warned of the negative effects of the cyberattack in mid-September. As a result, the company faced its longest losing streak since 2009 by the end of that month.
In conclusion, Clorox Co. has revised its outlook downwards as a direct result of a cybersecurity attack. Sales and earnings for the first quarter are expected to suffer a decline due to order-processing delays and product outages incurred from the attack.
