Clorox Earnings: Transitory Cyberattack Hit Unlikely to Thwart Its Wide Moat; Shares Undervalued

While still reeling from a cybersecurity breach in mid-August, we surmise wide-moat Clorox’s first quarter marks evidence it’s working expeditiously to repair deflated inventory levels and regain forgone distribution. In this context, the firm reported an 18% slump in organic sales and $0.49 in adjusted EPS, both of which outpaced the 21%-26% organic sales rout and $0.40 per share loss to flat adjusted EPS that management was calling for just a month ago. And the market seems to share our sentiment, sending shares up nearly 10% in afterhours.