Church & Dwight Reported Q4 Beat, Strong 2022 Guidance

• Church & Dwight Co., Inc. (NYSE:CHD) matched its estimated earnings per share (EPS) of $0.77 and surpassed revenue expectations with approximately $1.582 billion in the fourth quarter of 2024.
• The company's organic sales rose by 4.2%, driven by increased volumes, a favorable product mix, and strategic pricing.
• Global online sales accounted for 21.4% of total consumer sales in 2024, highlighting a significant shift towards e-commerce.

Church & Dwight Co., Inc. (NYSE:CHD), a prominent player in the consumer products industry, is known for its wide range of household and personal care products. Competing with other major brands in the Zacks Consumer Products - Staples industry, Church & Dwight reported earnings per share (EPS) of $0.77 on January 31, 2025, matching the estimated EPS. The company generated revenue of approximately $1.582 billion, surpassing the estimated revenue of about $1.565 billion.

In the fourth quarter of 2024, Church & Dwight reported strong financial results, with net sales reaching $1.582 billion, a 3.5% increase from the previous year. This performance exceeded the Zacks Consensus Estimate of $1.563 billion. The company's organic sales rose by 4.2%, driven by increased volumes, a favorable product mix, and strategic pricing. These factors contributed to the company's ability to surpass revenue expectations.

The company's quarterly adjusted earnings were $0.77 per share, aligning with the Zacks Consensus Estimate and reflecting an 18.5% increase from the previous year. This improvement highlights the strength of Church & Dwight's brands, successful new product launches, and a continued focus on execution. The company has consistently outperformed consensus EPS estimates in three of the past four quarters, showcasing its ability to deliver strong financial performance.

Church & Dwight's global online sales accounted for 21.4% of total consumer sales in 2024, indicating a significant shift towards e-commerce. The company has made strategic brand investments to position itself for future growth. CEO Matthew Farrell expressed satisfaction with the results, emphasizing the strength of the company's brands and the success of new products. Volume was the primary driver of organic growth, a trend expected to continue into 2025.

The company's financial metrics reflect its strong market position. With a price-to-earnings (P/E) ratio of approximately 44.20, the market has high expectations for Church & Dwight's future earnings growth. The debt-to-equity ratio of 0.41 indicates a relatively low level of debt compared to equity, suggesting a conservative capital structure. Additionally, the current ratio of approximately 1.70 demonstrates the company's good liquidity to cover short-term liabilities.

• Church & Dwight Co., Inc. (NYSE:CHD) reported a third-quarter earnings per share (EPS) of $0.79, beating the estimated $0.68.
• The company's revenue reached approximately $1.51 billion, surpassing the forecasted $1.50 billion.
• CHD's financial health is highlighted by a debt-to-equity ratio of roughly 0.53 and a current ratio of approximately 1.62.

Church & Dwight Co., Inc. (NYSE:CHD) is a well-known consumer goods company that specializes in household and personal care products. The company is recognized for its strong brand portfolio, which includes Arm & Hammer, Trojan, and OxiClean. CHD competes with other major players in the consumer goods industry, such as Procter & Gamble and Colgate-Palmolive.

On November 1, 2024, CHD reported its third-quarter earnings, revealing an earnings per share (EPS) of $0.79, which exceeded the estimated $0.68. This performance also marked an improvement from the $0.74 EPS reported in the same quarter last year. The company's revenue reached approximately $1.51 billion, surpassing the estimated $1.50 billion, as highlighted by Zacks Investment Research.

The impressive financial results are driven by strong consumer demand and the resilience of CHD's brands. The successful launch of new products also contributed to the company's growth. CHD's ability to adapt and meet consumer needs has been a key factor in its recent financial performance, as discussed during the earnings conference call attended by analysts from major financial institutions.

CHD's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 46.60, indicating investor confidence in its earnings potential. The price-to-sales ratio stands at about 4.24, while the enterprise value to sales ratio is around 4.48, reflecting the company's valuation relative to its sales.

The company's financial health is supported by a debt-to-equity ratio of roughly 0.53, indicating a moderate level of debt. CHD's current ratio of approximately 1.62 suggests a strong liquidity position, enabling it to cover short-term liabilities effectively. The enterprise value to operating cash flow ratio is about 24.65, providing insight into the company's valuation compared to its cash flow from operations.

RBC Capital shared its outlook on Church & Dwight (NYSE:CHD) ahead of the upcoming Q1/23 earnings report, scheduled to be released on April 27.

The analysts expect Q1 organic sales growth of 1.6% (in line with the Street estimates) and EPS of $0.76 (vs. Street’s $0.77) and see a modest upside to numbers.

The analysts expect another quarter of household strength driven by the company’s value brands and an improving supply chain. They expect the company’s troubled spots to remain a drag but less than in previous quarters. On the flip side, the company’s recent acquisitions are doing very well (Hero/Therabrush).

The analysts expect a gross margin expansion of 10 bps in the quarter to 42.7%. The company expects gross margin inflection into expansion territory this quarter following the past 10 quarters of contraction.

RBC Capital analysts provided their outlook on Church & Dwight Co., Inc. (NYSE:CHD) ahead of the company’s upcoming Q4 results announcement, calling for organic growth of (1.1%), compared to the Street estimate of (0.9%) and EPS of $0.60 (in line with the Street).

The analysts expect another quarter driven by strength in the household business with more muted trends in personal care. The company’s household products are up 8.6% in tracked channels in the Dec quarter or 7.6% on a two-year average basis which represents a 200-bps acceleration since Sept on an underlying basis. Tracked channel performance has been driven by laundry and litter, up 10% and 13.6%, respectively.

The analysts lowered their 2023 EPS estimate to $3.03 from $3.15 reflecting the impacts of higher expected ad spend and interest expense. The analysts cut their price target from $85 to $83 while maintaining the Sector Perform rating.

Church & Dwight (NYSE:CHD) reported its Q3 results, with EPS of $0.76 coming in better than the Street estimate of $0.65. Revenue was $1.32 billion, compared to the Street estimate of $1.3 billion.

The company expects fiscal 2022 EPS to be in the range of $2.93-$2.97, compared to the Street estimate of $2.97. According to the analysts at RBC Capital, Q3 was a mixed quarter, with continued softness in the personal care business (discretionary brands/VMS) partially mitigated by Household strength. Personal care issues delay organic/margin recovery and bring numbers lower but household performance is impressive helped by the macro environment.

The analysts slightly raised their 2022 organic growth estimate to 1.1% (from 0.2%) and lowered their EPS estimate to $2.95. They maintained the Sector Perform rating, but lowered their price target on the company’s shares to $85 from $90.

Church & Dwight Co., Inc. (NYSE:CHD) announced it has entered into a definitive agreement to acquire the Hero Mighty Patch brand for $630 million.

Furthermore, the company lowered its full-year outlook, with sales growth expected to be in the range of 2%-4% (vs. prior 4%-5%). Q3 sales are expected to drop by 1% (vs. prior 3% growth at the midpoint) reflecting lower demand for Waterpik, Vitafusion and Flawless.

Church & Dwight Co., Inc. (NYSE:CHD) shares dropped nearly 8% since the Q2 earnings announcement last week. EPS came in at $0.76, better than the Street estimate of $0.72. Revenue was $1.33 billion, compared to the Street estimate of $1.34 billion.

Analysts at Deutsche Bank provided their key takeaways from the results. Although they acknowledge a challenging operating environment amidst cost inflation and broad-based supply chain bottlenecks, the analysts noted the results and updated guidance were disappointing.

While the EPS came in better than expected, the analysts mentioned that this could be primarily attributed to significantly lower marketing spend (approximately 18% lower than consensus), as company organic growth of 3.4% missed the consensus estimate of 3.7%.

More critically, higher costs and lost revenue from demand headwinds in discretionary categories (Waterpik, Flawless) caused the company to materially reduce its full-year EPS estimates for 2022 to around $3.02 from the low-end of $3.14-$3.26 prior.

The analysts lowered their price target on the company’s shares to $93 from $99, while maintaining their hold rating.