I remain upbeat about the shares of Clorox, a US producer and marketer of non-durable consumer products. Earlier this month, the company issued solid results for its fiscal 2016 first quarter ended Sep 30. Revenues increased 3% y-o-y to $1.39 bn and surpassed consensus estimate of $1.37 bn. The improvement was driven by strong performance across all US businesses that gained from volume growth and price increases, and this was partially offset by currency headwinds. On a currency-adjusted basis, sales were up 6%. EBIT rose 20.6% to $298 mn supported by the benefits of cost savings as well as slightly lower commodity costs, and EBIT margin expanded 310 basis points to 21.4%. Adjusted earnings per share jumped 20% to $1.32 and were healthy ahead of analysts’ average projection of $1.18. During FQ1, Clorox repurchased about 1 mn shares of its common stock for about $112 mn. A quarterly dividend was 77 cents per share, which offers a solid annualized dividend yield of 2.5%. Management reiterated its outlook for fiscal 2016, wherein it anticipates sales growth of flat to up 1% and EBIT margin expansion in the range of 25-50 basis points. Currency-neutral sales growth is expected in the range of 3-4%. Clorox continues to forecast FY2016 adjusted earnings in the range of $4.68-4.83 per share. To note, Clorox regularly outperforms consensus estimates, mainly benefiting from product innovations and improved pricing. Further, management’s confidence in the strategy of achieving growth via its cost saving plan and efficient pricing despite currency headwinds and slowing global economies inspires optimism about the company’s upcoming results. Clorox’s shares are currently braking a $125 resistance level. Medium-term target is $135. $CLX, Clorox Company (The) / 1440