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Organic Sales to Drive Church & Dwight (CHD) in Q1 Earnings

Zacks Equity Research

Church & Dwight Co., Inc. CHD is slated to release first-quarter 2019 results on May 2. This provider of household and personal care products has surpassed the Zacks Consensus Estimate by an average of 3.3% in the trailing four quarters.

Let’s see how things are placed ahead of this release.

Church & Dwight Co., Inc. Price and EPS Surprise



Church & Dwight Co., Inc. Price and EPS Surprise | Church & Dwight Co., Inc. Quote

What to Expect?

The Zacks Consensus Estimate for earnings has remained stable over the past 30 days at 66 cents, which indicates growth of 4.8% from the year-ago quarter’s figure. Also, the consensus mark for revenues is $1,040 million, implying a rise of 3.4% from the figure reported in the year-ago quarter.

Factors Likely to Impact Q1

Church & Dwight is likely to witness organic sales growth in the quarter to be reported. Notably, the company’s organic sales have been rising year over year for quite some time, backed by solid focus on product innovations. Also, the company’s Consumer International business has been driving organic sales in particular and is likely to act as a tailwind in the upcoming quarterly results. To this end, BATISTE, ARM & HAMMER dental care, NAIR in the export business, ARM & HAMMER clumping cat litter and liquid laundry detergent in Canada, and TROJAN and OXICLEAN in Mexico are expected to have positive impacts on the first-quarter results.

Well, the Zacks Consensus Estimate for net sales at the Consumer International segment is currently pegged at $186 million, suggesting an increase from $181 million reported in the year-ago period. The consensus mark for Consumer Domestic segment sales stands at $777 million, calling for growth of 3.5% from the year-ago quarter’s reported figure.

Strong organic sales, continued category growth and healthy market share gains are set to drive sales in the first quarter of 2019. Also, Church & Dwight’s acquisitions are likely to contribute to top-line growth. Markedly, for the to-be-reported quarter, sales growth is anticipated to be approximately 3.5-4% both on a reported and organic basis. Though rising input costs pose threats for Church & Dwight’s bottom-line performance, its pricing initiatives and aforementioned sales drivers are likely to cushion the stock this time around.
 
What the Zacks Model Unveils

Our proven model shows that Church & Dwightis likely to beat bottom-line estimates this quarter. For this to happen, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Church & Dwight’s Zacks Rank #2 combined with an Earnings ESP of +0.30% makes us reasonably confident of an earnings beat.

Other Stocks Poised to Beat Earnings Estimates

Estee Lauder EL has an Earnings ESP of +1.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Inter Parfums IPAR has an Earnings ESP of +5.73% and a Zacks Rank #3.

Campbell Soup CPB has an Earnings ESP of +1.80% and a Zacks Rank #3.

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