Household products company Church & Dwight (NYSE:CHD) will be announcing earnings results tomorrow morning. Here’s what investors should know.
Church & Dwight beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $1.51 billion, up 3.8% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
Is Church & Dwight a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Church & Dwight’s revenue to grow 2.4% year on year to $1.56 billion, slowing from the 6.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.77 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Church & Dwight has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.
Looking at Church & Dwight’s peers in the household products segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Procter & Gamble delivered year-on-year revenue growth of 2.1%, beating analysts’ expectations by 1.3%, and WD-40 reported revenues up 9.3%, topping estimates by 4.1%. Procter & Gamble traded up 2.8% following the results while WD-40 was down 5.8%.
Read our full analysis of Procter & Gamble’s results here and WD-40’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Band is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the household products stocks have shown solid performance, the group has generally underpeformed, with share prices down 2.9% on average over the last month. Church & Dwight is up 6.4% during the same time and is heading into earnings with an average analyst price target of $106.87 (compared to the current share price of $106.77).
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