Zacks Investment Research upgraded shares of The Clorox Company (CLX) from NEUTRAL to OUTPERFORM on August 16, 2012, with a target price of $86.00.
Clorox's fourth-quarter 2012 earnings of $1.36 per share came ahead of the Zacks Consensus Estimate of $1.29, and rose 5.4% from the prior-year period's earnings. Sales for the quarter grew 4% year over year to $1,541 million. The encouraging results were driven by benefits from cost-saving initiatives, higher volumes, price increases, lower advertising costs and tax rate. Additionally, contributions from new businesses acquired earlier in the year also drove the sales upside. Strong results as well as innovations across its brands prompted management to guide fiscal 2013 sales growth in the range of 2% to 4% and earnings per share between $4.20 and $4.35 range. Further, the company is constantly looking for acquisitions and alliance opportunities to boost its market share and product portfolio. We upgrade our recommendation on Clorox to Outperform.
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