• Earlier this month, Clorox reported third-quarter revenue of US$1.43 billion, down 18.9% year on year but about 2% above analyst expectations, as the rollout of a new ERP system caused temporary operational disruptions and market share pressure.

• Despite the sharp sales decline and ERP-related hiccups, the company’s successful system launch and EBITDA beat highlighted progress in its broader transformation plan focused on efficiency and consumer value.

• Next, we’ll examine how Clorox’s ERP-driven disruptions yet better-than-expected results may influence its longer-term earnings recovery narrative.

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To own Clorox, you need to believe its portfolio of household brands can steadily convert into cash flow despite slow category growth and intensifying price competition. The latest quarter’s ERP-related sales drop but EBITDA beat reinforces that the transformation benefits are still on track in the near term, while also underlining execution risk around the ERP rollout as the key short term swing factor.

Against that backdrop, Clorox’s decision to maintain and slightly increase its quarterly dividend to US$1.24 per share stands out. It signals management’s focus on shareholder returns even as the ERP transition weighs on reported sales and guidance, which matters for investors weighing the timing of any earnings recovery against ongoing cost and supply chain pressures.

But while the ERP rollout promises long term efficiency gains, investors should also be aware that…

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Clorox’s narrative projects $7.0 billion revenue and $881.8 million earnings by 2028. This implies a 0.4% yearly revenue decline and an earnings increase of about $71.8 million from $810.0 million today.

Uncover how Clorox’s forecasts yield a $124.59 fair value, a 23% upside to its current price.

Six fair value estimates from the Simply Wall St Community span about US$98 to US$213 per share, showing how far apart individual views can be. When you set those against Clorox’s ERP transition risk and its impact on near term earnings, it becomes even more important to compare several perspectives before forming your own view on the stock.

Explore 6 other fair value estimates on Clorox – why the stock might be worth just $98.22!

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