Jim Cramer was shocked by the action on Clorox on Thursday. The company reported a solid earnings beat and raised full-year guidance for 2016, yet the stock was slammed hard, down almost 5 percent in a single session.
What the heck just happened to Clorox?
“I think largely it was because of a broad rotation out of consumer products stocks and into commodities,” the “Mad Money” host said.
Cramer spoke with Clorox CEO Benno Dorer to find out if the company behind such well-known brands as Glad Bags, Kingsford charcoal, Hidden Valley salad dressing and Burt’s Bees could be offering a terrific entry point.
“I focus on the long-term fundamentals. Our shareholder return has been very solid over the last 12 months, our stock grows more than 20 percent, and fundamentally, what I care about is, are we delivering against the business?” Dorer said.
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Dorer was named CEO of Clorox in November 2014. Cramer noted that, since then, Clorox has introduced product innovation, such as offering bleach that doesn’t splash.
“Look we have a lot of innovation out there right now… where as others don’t, and it’s really across the portfolio,” Dorer said.
Dorer added that one of the priorities for the company is to invest in further innovation and drive profitability for shareholders.
“I feel good about where we are, and I’m optimistic about where we are going as a company,” Dorer said.