Household Products Stocks Q3 Teardown: Church & Dwight (NYSE:CHD) Vs The Rest
As Q3 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers amongst the household products stocks, including Church & Dwight (NYSE:CHD) and its peers.
Household products companies engage in the manufacturing, distribution, and sale of goods that maintain and enhance the home environment. This includes cleaning supplies, home improvement tools, kitchenware, small appliances, and home decor items. Companies within this sector must focus on product quality, innovation, and cost efficiency to remain competitive. Household products stocks are generally stable investments, as many of the industry's products are essential for a comfortable and functional living space. Recently, there's been a growing emphasis on eco-friendly and sustainable offerings, reflecting the evolving consumer preferences for environmentally conscious options.
The 10 household products stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 1.8% Stocks have faced challenges as investors prioritize near-term cash flows, but household products stocks held their ground better than others, with the share prices up 6.5% on average since the previous earnings results.
Church & Dwight (NYSE:CHD)
Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE:CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.
Church & Dwight reported revenues of $1.46 billion, up 10.5% year on year, topping analyst expectations by 1.5%. It was a mixed quarter for the company, with a decent beat of analysts' revenue estimates but underwhelming earnings guidance for the next quarter.
Matthew Farrell, Chief Executive Officer, commented, “Our Q3 results reflect the strength of our brands and our continued focus on execution. Over half of our organic growth in the quarter was driven by volume. Our domestic brands grew consumption in 11 of 17 categories. We grew share on brands representing 64% of sales. Global online sales continued to grow and as a percentage of total consumer sales were 17% in Q3.
The stock is up 3.4% since the results and currently trades at $95.
Is now the time to buy Church & Dwight? Access our full analysis of the earnings results here, it's free.
Best Q3: Clorox (NYSE:CLX)
Founded in 1913 with bleach as the sole product offering, Clorox (NYSE:CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.
Clorox reported revenues of $1.39 billion, down 20.3% year on year, outperforming analyst expectations by 5.8%. It was an exceptional quarter for the company, with an impressive beat of analysts' earnings estimates.
Clorox delivered the biggest analyst estimates beat but had the slowest revenue growth among its peers. The stock is up 24.4% since the results and currently trades at $143.49.
Is now the time to buy Clorox? Access our full analysis of the earnings results here, it's free.
Weakest Q3: Central Garden & Pet (NASDAQ:CENT)
Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQGS:CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.
Central Garden & Pet reported revenues of $750.1 million, up 6% year on year, exceeding analyst expectations by 2.1%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year.
The stock is up 8.6% since the results and currently trades at $47.62.
Read our full analysis of Central Garden & Pet's results here.
Energizer (NYSE:ENR)
Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE:ENR) is one of the world's largest manufacturers of batteries.
Energizer reported revenues of $811.1 million, up 2.6% year on year, surpassing analyst expectations by 2.1%. It was a weaker quarter for the company, with a miss of analysts' operating margin estimates.
The stock is down 4.5% since the results and currently trades at $32.17.
Read our full, actionable report on Energizer here, it's free.
Colgate-Palmolive (NYSE:CL)
Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive (NYSE:CL) is a consumer products company that focuses on personal, household, and pet products.
Colgate-Palmolive reported revenues of $4.92 billion, up 10.3% year on year, surpassing analyst expectations by 2.1%. It was a strong quarter for the company, with a decent beat of analysts' revenue estimates.
The stock is up 10.5% since the results and currently trades at $80.72.
Read our full, actionable report on Colgate-Palmolive here, it's free.
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The author has no position in any of the stocks mentioned
