Goldman Sachs Not Convinced Clorox (CLX) Q2 'Beat' was Real

February 5, 2013 11:05 AM EST
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Goldman Sachs bumped estimates and its price target on Clorox (NYSE: CLX) higher following Q2 results which easily beat the Street, although the firm is questioned the quality of the beat.

Goldman said while the headline beat was impressive it was almost entity due to transitory factors. The $0.03 lease back gains is non-recurring and Goldman estimates that transitory top line benefits may have added another $0.07 to the beat. Part of this appears to be a pull-forward from Q3 on pipeline fill. Another part appears to be the anticipated bump from its bleach compaction conversion.

While the bleach compaction is a nice tailwind this year, it may prove to be a headwind late next year as the inventory builds are lapped and consumers adjust dosage.

The firm price target goes from $79 to $82, FY13 EPS goes from $4.36 to $4.39, FY13 from $4.72 to $4.73 and FY15 from $5.05 to $5.07. Goldman maintained their Neutral rating.

For an analyst ratings summary and ratings history on Clorox click here. For more ratings news on Clorox click here.

Shares of Clorox closed at $79.72 yesterday.

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