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What's in Store for Church & Dwight (CHD) in Q4 Earnings?

Church & Dwight Co., Inc. CHD is likely to register a top-line growth when it reports fourth-quarter 2022 earnings on Feb 3. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,395 million, suggesting an increase of almost 2% from the prior-year quarter’s reported figure. The consensus mark for 2022 sales is pegged at $5,335 million, indicating an increase of 2.8% from the year-ago period’s reported figure.

Church & Dwight’s bottom line is likely to decline year over year in the fiscal fourth quarter. The Zacks Consensus Estimate for the fourth quarter bottom line has remained unchanged in the past 30 days at 60 cents per share. The projection indicates a decline of 6.3% from the year-ago quarter’s reported figure. The company’s consensus mark for 2022 bottom line is pegged at $2.95 per share, indicating a decrease of 2.3% from the year-ago period’s reported figure.

The consumer products company has a trailing four-quarter earnings surprise of 10.9%, on average. CHD delivered an earnings surprise of roughly 17% in the last reported quarter.

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

 

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

Church & Dwight Co., Inc. price-eps-surprise | Church & Dwight Co., Inc. Quote

 

Things To Note

Church & Dwight has been gaining from its prudent buyouts and focus on solid innovation. The company continues to benefit from favorable consumption demand. Church & Dwight has been resorting to incremental pricing across its portfolio to counter rising costs.

For 2022, management expects sales growth of nearly 3% and organic sales increase of roughly 1%. For the fourth quarter of 2022, the company expects roughly 2% increase in reported sales. In its last earnings call, management highlighted that solid consumption in several businesses during 2022 has offset the slowdown across discretionary brands, including Waterpik and Flawless and reduced consumption growth in the vitamin category.

That being said, Church & Dwight has been witnessing a shrinking gross margin in the past few quarters. For 2022, management expects 2022 reported gross margin contraction, as it envisions inflation to have outpaced pricing and productivity. Moreover, management expects gross margin contraction in the fourth quarter caused by an unfavorable mix within the portfolio.

Church & Dwight expects adjusted earnings per share (EPS) in the range of $2.93-$2.97, down 2-3% from adjusted EPS reported in 2021. Management expects fourth-quarter adjusted EPS in the band of 58-62 cents per share, down 3-9% from the year-ago quarter’s adjusted EPS. The downside can be attributed to a major rise in quarterly tax rates and acquisition-related costs.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Church & Dwight this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Church & Dwight carries a Zacks Rank #3 and an Earnings ESP of -0.17%.

Some Stocks With the Favorable Combination

Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Performance Food Group Company PFGC currently has an Earnings ESP of +0.39% and a Zacks Rank #3. The company is expected to register bottom-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 76 cents suggests an increase from the 57 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance Food Group Company's top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $13.91 billion, indicating an increase of 8.4% from the figure reported in the year-ago quarter. PFGC has a trailing four-quarter earnings surprise of 15.2%, on average.

Freshpet, Inc. FRPT is likely to register top and bottom-line growth when it reports fourth-quarter 2022 results. FRPT has an Earnings ESP of +2.04% and a Zacks Rank #3. The Zacks Consensus Estimate for Freshpet’s bottom line has remained unchanged at a loss of 8 cents in the past 30 days, indicating 61.9% growth from the year-ago period reported figure.

FRPT has a trailing four-quarter negative earnings surprise of roughly 88%, on average. The consensus mark for Freshpet’s top line is pegged at $151.1 million, calling for growth of 30.4% from the prior-year quarter’s reported figure.

Kellogg Company K currently has an Earnings ESP of +3.39% and a Zacks Rank of 3. K is expected to register a top-line improvement when it reports fourth-quarter 2022 numbers.

The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.7 billion, calling for growth of 6.7% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the quarterly EPS of 84 cents, indicating growth of 1.2% compared with the figure reported in the year-ago fiscal quarter. K has a trailing four-quarter earnings surprise of 10.6%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Church & Dwight Co., Inc. (CHD) : Free Stock Analysis Report

Freshpet, Inc. (FRPT) : Free Stock Analysis Report

Kellogg Company (K) : Free Stock Analysis Report

Performance Food Group Company (PFGC) : Free Stock Analysis Report

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