12:42 PM EDT, 07/30/2024 (MT Newswires) -- Clorox (CLX) is likely to report mixed fiscal Q4 results as the divestiture of Argentina will impact organic growth and foreign exchange amid competitive pressures and mixed results, RBC Capital Markets said in an earnings preview on Tuesday.

Clorox announced the sale of certain wholly owned subsidiaries with operations in Argentina, Uruguay, and Paraguay to private equity fund Apex Capital in March. The sale included the company's two production plants and rights to Clorox brands in Argentina, Uruguay, and Paraguay, along with shared intellectual property.

The firm said Clorox's fiscal 2025 outlook will show "below-algorithm" net sales growth with divestiture headwinds along with lapping and recovery of cyber event in fiscal Q1 and Q2, respectively, creating volatility.

"As the company works to regain share that was lost due to the cyber attack, we believe that Clorox will need to reinvest at higher than normal levels," RBC added.

Clorox aims to recover lost distribution by the end of the fiscal year with a focus on regaining market share amid consumer pressure and competitive environments, according to the note.

The company expects savings initiatives to offset moderate inflation and private label impacts post-cyber attack to normalize "given return of distribution," RBC said.

The firm reiterated its rating on Clorox's stock to sector perform and kept the price target at $143.

Shares of Clorox were down 2.8% in recent trading

Price: 130.17, Change: -3.72, Percent Change: -2.78