Clorox stock surges as margins recover, kitty litter sales shine
Yahoo Finance Live anchors discuss the market's reaction to Clorox Q2 earnings.
JARED BLIKRE: All right, I'm talking about Clorox here. It is a time honored staple. And Clorox, after an earnings beat, is up over 10%. It was up over 10% at its highs, up about 9% right now, having its best day in three years during the initial pandemic lockdown. That's when it saw its low. And here's a-- wow, a max chart. Let me just dial this down to a five-year and continue on. Now we might not be wiping down our groceries anymore, but the trouble that emerged since then is inflation, of course, hitting margins and the bottom line. Well, this quarter is a step in the right direction.
Raymond James likes to play ahead of a cold, flu season, and they see margins recovering as, quote, "pricing accelerates and cost inflation decelerates." Also saying that supply chain constraints at Glad and Burt's Bees were less of a drag than feared. So staples had a pretty good year last year, not suffering as much as everything else. You can see, still kind of in a trading range right here at the upper end of that. We'll have to see if they can break through. But with the earnings behind them now, probably not going to be imminently.
DAVE BRIGGS: And kitty litter stands out in this report. They own Fresh brand. Their CFO says, really, litter was the star of the group. All hail kitty litter, guys. We continue to see very strong category growth. Clorox a big fan of kitty litter.