Church & Dwight (CHD) Posts in Line Q4 Earnings, Sales Beat
Church & Dwight Co. Inc. CHD, a leading sodium bicarbonate producer, released fourth-quarter 2015 results, wherein earnings of 82 cents a share came in line with the Zacks Consensus Estimate and jumped 5.1% year over year. On a currency-neutral basis, earnings jumped 8.9%.
The company anticipates adjusted earnings in 2016 to grow by roughly 7–9%, or 10% on a currency-neutral basis. For first-quarter 2016, adjusted earnings is envisioned to be approximately 85 cents per share, representing a 6% year over year growth.
Earnings Estimate Revision: The Zacks Consensus 2016 Estimate has been unchanged in the last 30 days. Church & Dwight’s performance in the trailing four quarters (excluding the quarter under review) gives a positive picture, with an average surprise of 1.4%.
Revenues: Church & Dwight generated net sales of $873.6 million, which was up 0.9% year over year and exceeded the Zacks Consensus Estimate of $862 million. Organic sales grew 2.6% on the back of robust Domestic and International segment performances.
For 2016, company expects organic sales growth of 3%, while for the first quarter, organic sales is expected to grow 2%-3%.
Key Events: Management hiked its quarterly cash dividend by 6% to 35.5 cents per share, thereby marking its 20th straight year of dividend hike. This will be payable on Mar 1, 2016 to shareholders of record as on Feb 16.
Further, Church & Dwight acquired Spencer Forrest, Inc. for about $175 million, in Jan 2016. Spencer Forrest is the maker of TOPPIK, which is a leading hair building fiber brand for people with thinning hair.
Zacks Rank: Currently, Church & Dwight carries a Zacks Rank #3 (Hold) which is subject to change based on the just released earnings results.
Check back later for our full write up on Church & Dwight’s earnings report!
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