TEW Magazine

  Clorox (CLX.N) shares experienced an 8.1% decline on Thursday, reaching their lowest point since May 2018, following a warning from the cleaning supplies company. The warning stated that a cyber attack in August would result in a quarterly loss and could reduce its revenue by up to 28%. Clorox shares were last traded at $121.16, hitting a low of $119.56 earlier in the day, marking the largest single-day percentage loss since February 2022. Warning about a first-quarter gross margin decline Late on Wednesday, Clorox projected a loss per share ranging from $0.35 to $0.75 for its fiscal first quarter ending on September 30th, compared to a profit of $0.68 in the same period the previous year. The company also anticipated a year-over-year decline in net sales of 23% to 28%. Following this announcement, Evercore ISI lowered its Clorox price target from $160 to $120, while Raymond James downgraded the stock from ‘outperform’ to ‘market perform.’ Bank of America reduced its price targe...

  On Wednesday, the U.S. Securities and Exchange Commission (SEC) approved new regulations that impose requirements on publicly traded companies to disclose details of a cyber attack within four days of identifying its “material” impact on their financial situation. This marks a significant change in how companies are expected to disclose cybersecurity breaches. SEC chair Gary Gensler highlighted that incidents like a factory fire or a cybersecurity breach with millions of compromised files can both have material implications for investors. While many public companies currently provide  cybersecurity disclosures , Gensler believes that a more consistent, comparable, and decision-useful approach to such disclosures would benefit both companies and investors.  Disclose specific details about the nature, scope, and timing of the cyber attack Under the new rules, companies are obligated to disclose specific details about the nature, scope, and timing of the cyber attack , as...