Church & Dwight (CHD) Queues for Q3 Earnings: Is a Beat Likely?
Church & Dwight Co., Inc. CHD is likely to register top-line growth when it reports third-quarter 2023 earnings on Nov 3. The Zacks Consensus Estimate for revenues is pegged at $1.4 billion, suggesting a rise of 8.7% from the prior-year quarter’s reported figure.
The consensus mark for quarterly earnings has risen by a penny in the past 30 days to 68 cents per share. This indicates a decline of 10.5% from the year-ago quarter’s reported figure. CHD has a trailing four-quarter earnings surprise of 12.1%, on average.
Factors to Note
Church & Dwight has been benefiting from its prudent buyouts, innovation and favorable consumption demand for its brands. Solid pricing actions to counter inflation have also been aiding. For 2023, management expects pricing and productivity to counter inflationary headwinds, which bodes well for the quarter under review. Our model suggests pricing/product mix growth of 5.7% in the third quarter.
Church & Dwight Co., Inc. Price, Consensus and EPS Surprise
Church & Dwight Co., Inc. price-consensus-eps-surprise-chart | Church & Dwight Co., Inc. Quote
Another factor working for Church & Dwight is the online channel. The company’s global online sales, as a percentage of total sales, increased to 18% in the second quarter compared with 16.3% in the preceding quarter. These trends, together with contributions from acquisitions like the Hero Mighty Patch brand, are likely to have worked well for CHD in the third quarter of 2023. We expect acquisitions to boost sales growth by 3.8% in the third quarter.
The company has been witnessing increasing marketing and SG&A expenses for the past few quarters. For 2023, management expects to make considerable increases in marketing and SG&A investments. It also expects SG&A to increase from 2022 due to incentive compensations and growth-oriented investments. These may have impacted the adjusted EPS in the quarter under review. Our model suggests a 24.9% rise in marketing expenses for the third quarter.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Church & Dwight this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Church & Dwight carries a Zacks Rank #3 and has an Earnings ESP of +2.21%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies worth considering as our model shows that these also have the correct combination to beat on earnings this time:
Inter Parfums IPAR currently has an Earnings ESP of +0.30% and a Zacks Rank #1. The company is likely to register top-and-bottom-line growth when it reports third-quarter 2023 numbers. The Zacks Consensus Estimate for Inter Parfums’ quarterly revenues is pegged at $368 million, indicating a rise of 31.2% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Inter Parfums’ quarterly earnings per share of $1.33 suggests an increase of 2.3% from the year-ago quarter’s levels. IPAR has a trailing four-quarter earnings surprise of 45.9%, on average.
J. M. Smucker SJM has an Earnings ESP of +0.27% and a Zacks Rank #3. The company is slated to witness bottom-line growth when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for J. M. Smucker’s quarterly earnings has remained unchanged over the past 30 days at $2.47 per share, which suggests growth of 2.9% from the year-ago quarter’s reported number. SJM delivered an earnings surprise of 7.3%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for J. M. Smucker’s quarterly revenues is pegged at about $2 billion, which suggests a decline of 11.3% from the figure reported in the prior-year quarter.
Monster Beverage MNST currently has an Earnings ESP of +1.98% and a Zacks Rank of 3. The company is likely to register increases in the top and bottom lines when it reports third-quarter 2023 results. The Zacks Consensus Estimate for Monster Beverage’s quarterly revenues is pegged at $1.9 billion, suggesting growth of 14.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Monster Beverage’s quarterly earnings has remained unchanged in the past 30 days at 40 cents per share, which indicates 33.3% growth from the year-ago quarter's reported number. MNST delivered an earnings surprise of 2.2%, on average, in the trailing four quarters.
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Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report
The J. M. Smucker Company (SJM) : Free Stock Analysis Report
Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
Monster Beverage Corporation (MNST) : Free Stock Analysis Report
