Spotting Winners: Central Garden & Pet (NASDAQ:CENT) And Household Products Stocks In Q3
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how the household products stocks have fared in Q3, starting with Central Garden & Pet (NASDAQ:CENT).
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 decent Q3; on average, revenues beat analyst consensus estimates by 1.9% 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 5.9% on average since the previous earnings results.
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, topping analyst expectations by 2.1%. It was a weak quarter for the company, with a miss of analysts' adjusted EBITDA, and EPS estimates.
"We are proud of what Team Central was able to achieve in a challenging environment characterized by evolving consumer behavior, unfavorable retailer inventory dynamics, high inflation and extreme weather. Despite these headwinds, we delivered non-GAAP EPS within our revised fiscal 2023 guidance, successfully turned inventories into cash, generated record cash flow and continued to make progress on our Cost and Simplicity program," said Beth Springer, Interim CEO of Central Garden & Pet.
The stock is up 10.9% since the results and currently trades at $48.62.
Read our full report on Central Garden & Pet 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 a very strong 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 22.3% since the results and currently trades at $141.15.
Is now the time to buy Clorox? Access our full analysis of the earnings results here, it's free.
Spectrum Brands (NYSE:SPB)
A leader in multiple consumer product categories, Spectrum Brands (NYSE:SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.
Spectrum Brands reported revenues of $740.7 million, down 1.2% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a miss of analysts' organic revenue growth estimates. On the other hand, Spectrum Brands blew past analysts' Adjusted EBITDA and EPS expectations this quarter.
The stock is up 2.8% since the results and currently trades at $78.99.
Read our full analysis of Spectrum Brands's results here.
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 an impressive beat of analysts' organic revenue growth estimates and a decent beat of analysts' revenue estimates.
The stock is up 10.6% since the results and currently trades at $80.82.
Read our full, actionable report on Colgate-Palmolive here, it's free.
Reynolds (NASDAQ:REYN)
Best known for its aluminum foil, Reynolds (NASDAQ:REYN) is a household products company whose products focus on food storage, cooking, and waste.
Reynolds reported revenues of $935 million, down 3.3% year on year, in line with analyst expectations. It was a strong quarter for the company, with an impressive beat of analysts' gross margin estimates. In addition, next quarter's earnings guidance exceeded Wall Street's estimates.
The stock is up 5.9% since the results and currently trades at $27.24.
Read our full, actionable report on Reynolds here, it's free.
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The author has no position in any of the stocks mentioned
