Clorox (CLX) Stock Rises on Earnings Beat, Jim Cramer's Take
NEW YORK (TheStreet) -- Clorox Co. (CLX) - Get Report stock is gaining 4.02% to $126.84 in late morning trading on Monday, after the company reported financial results that surpassed estimates for the fiscal 2016 first quarter.
This morning before the market open, the company reported earnings of $1.32 per share for the quarter ended September 30, beating estimates of $1.18 per share.
Revenue increased 3% year-over-year to $1.39 billion for the latest quarter, surpassing expectations of $1.38 billion.
Revenue from the cleaning segment rose 6% year-over-year to $497 million, driven by strong performance from products such as Clorox disinfecting wipes.
Household products revenue increased 5% to $411 million, while international revenue dropped 8% to $251 million due to unfavorable foreign exchange rates.
TheStreet's Jim Cramer, portfolio manager of the Action Alerts PLUScharitable trust portfolio, had this to say about the company on CNBC's "Mad Dash" segment this morning: "This is a remarkable story. It's a story of reinvention... This company took prosaic businesses and turned them into turbo-charged businesses."
"Increased brand investment, including product innovation, is delivering meaningful value to consumers, resulting in category growth and the highest quarterly gain in total U.S. market share in three years," CEO Benno Dorer said in a statement.
Separately, TheStreet Ratings team rates CLOROX CO/DE as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate CLOROX CO/DE (CLX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: CLX
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