Core Insights - Church & Dwight (CHD) reported $1.58 billion in revenue for Q4 2024, a year-over-year increase of 3.5% and a surprise of +1.22% over the Zacks Consensus Estimate of $1.56 billion [1] - The company's EPS for the same period was $0.77, compared to $0.65 a year ago, aligning with the consensus estimate [1] Revenue Performance - Total Consumer Net Sales reached $1.51 billion, exceeding the nine-analyst average estimate of $1.49 billion, reflecting a year-over-year change of +4.1% [4] - Consumer Domestic sales were $1.23 billion, slightly above the $1.22 billion estimate, marking a +2.7% change year-over-year [4] - Consumer International sales amounted to $285.10 million, surpassing the $273.57 million estimate, with a year-over-year increase of +10.2% [4] - Specialty Products Division sales were $71.20 million, below the $71.60 million estimate, showing a year-over-year decline of -6.6% [4] Segment Analysis - Consumer Domestic - Household Products generated $654.80 million, exceeding the $639.46 million estimate, with a year-over-year increase of +4.4% [4] - Consumer Domestic - Personal Care Products reported $570.90 million, slightly below the $577.65 million estimate, reflecting a +0.9% change year-over-year [4] Stock Performance - Church & Dwight shares returned +3.2% over the past month, outperforming the Zacks S&P 500 composite's +2.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - Church & Dwight (CHD) reported quarterly earnings of $0.77 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.65 per share a year ago [1]. Financial Performance - The company posted revenues of $1.58 billion for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 1.22%, compared to $1.53 billion in the same quarter last year [2]. - Over the last four quarters, Church & Dwight has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2]. Stock Performance - Church & Dwight shares have increased approximately 2.3% since the beginning of the year, while the S&P 500 has gained 3.2% [3]. - The current status of estimate revisions for Church & Dwight is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.97 on revenues of $1.55 billion, and for the current fiscal year, it is $3.73 on revenues of $6.31 billion [7]. - The outlook for the Consumer Products - Staples industry, to which Church & Dwight belongs, is currently in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8].

Financial Performance - Q4 2024 net sales increased by 3.5% to $1,582.0 million, exceeding the company's outlook of 1.5% to 2.5% growth[7] - Full year 2024 net sales grew by 4.1% to $6,107.1 million, surpassing the expected growth of approximately 3.5%[2] - Organic sales for Q4 2024 rose by 4.2%, driven by a 3.0% increase in volume and a 1.2% positive price and product mix[7] - Full year adjusted EPS for 2024 was $3.44, an increase of 8.5% compared to 2023, exceeding the company's outlook of 8%[6] - Basic net income per share for Q4 2024 was $0.77, compared to $0.63 in Q4 2023, representing a 22.2% increase[35] - Total consumer net sales for the twelve months ended December 31, 2024, reached $5,803.8 million, up 4.6% from $5,546.9 million in 2023[39] - Diluted earnings per share (EPS) for the quarter ended December 31, 2024, was $0.77, an 18.5% increase from $0.65 in the same quarter of 2023[52] Cash Flow and Liquidity - Cash from operations for 2024 was $1.156 billion, an increase of $125.6 million from the previous year[14] - Cash and equivalents increased significantly to $964.1 million in 2024 from $344.5 million in 2023, indicating improved liquidity[36] - Net cash from operating activities for the twelve months ended December 31, 2024, was $1,156.2 million, compared to $1,030.6 million in 2023, an increase of 12.2%[37] Dividends and Shareholder Returns - The company announced a 4% increase in the quarterly dividend, raising it from $0.28375 to $0.295 per share, resulting in an annual payout of approximately $287 million[15] - Dividends per share increased to $0.28 in Q4 2024 from $0.27 in Q4 2023, reflecting a growth of 3.7%[35] Future Outlook - In 2025, the company expects net sales growth of 3% to 4% and adjusted EPS growth of 7% to 8%[23][25] - The company forecasts reported sales growth of 1.0% for the quarter ending March 31, 2025, and 3.0% for the year ending December 31, 2025[53] - For the year ending December 31, 2025, reported diluted earnings per share is forecasted to be between $3.63 and $3.68, representing a 53% to 55% increase from $2.37 in 2024[54] - Adjusted diluted earnings per share (non-GAAP) for the year ending December 31, 2025 is projected to be between $3.72 and $3.68, reflecting a 7% to 8% increase from $3.44 in 2024[54] Operational Efficiency - The effective tax rate for Q4 2024 increased to 25.2%, compared to 21.3% in Q4 2023, primarily due to one-time non-recurring tax items[13] - Adjusted SG&A expenses for the quarter ended December 31, 2024, were $240.2 million, representing 15.2% of net sales, a decrease from 15.6% in the previous year[51] - The company is focusing on improving earnings through cost management and operational efficiencies[54] Product Development and Market Strategy - The company plans to launch several new products in 2025, including ARM & HAMMER POWER SHEETS™ and HERO™ Mighty Patch Body, aimed at driving significant sales growth[16][20] - Future growth strategies include potential market expansion and new product development initiatives[54] Asset and Liability Management - Total assets rose to $8,883.1 million in 2024, up from $8,569.2 million in 2023, marking a growth of 3.7%[36] - The company reported a total of $1,315.9 million in current liabilities for 2024, down from $1,422.0 million in 2023, a decrease of 7.5%[36] - Capital expenditures decreased to $179.8 million in 2024 from $223.5 million in 2023, a reduction of 19.6%[37] - The company expects capital expenditures of approximately $130 million in 2025, returning to historical levels[26] Sales Performance by Division - The specialty products division reported a decline in sales of 6.6% for the three months ended December 31, 2024, compared to the same period in 2023[39] - Consumer international sales for the twelve months ended December 31, 2024, increased by 9.8% to $1,071.5 million from $975.7 million in 2023[39] - Organic sales growth for the three months ended December 31, 2024, was 4.2%, with consumer international sales growing by 9.6%[49]

Core Insights - Church & Dwight Co., Inc. (CHD) is expected to report growth in both revenue and earnings for the fourth quarter of 2024, with revenue estimated at $1.56 billion, reflecting a 2.4% increase year-over-year [1] - The earnings consensus for the fourth quarter remains at 77 cents per share, indicating an 18.5% growth compared to the previous year [2] Group 1: Company Performance - Church & Dwight's strong brand equity, driven by innovation and strategic acquisitions, supports its market position and growth [3] - Online sales represent a significant growth area, accounting for 20.7% of global sales as of the third quarter of 2024 [3] - The company's focus on expanding direct-to-consumer platforms and optimizing its omnichannel presence has yielded positive results amid changing consumer spending patterns [4] Group 2: Financial Management - Church & Dwight's cost management and strategic pricing are key in mitigating inflationary pressures and rising manufacturing costs [5] - For the full year 2024, the company anticipates an adjusted gross margin expansion of approximately 110 basis points, with a projected 30 basis points expansion for the fourth quarter [5] Group 3: Earnings Predictions - The company's earnings model suggests a likely earnings beat, supported by a positive Earnings ESP and a Zacks Rank of 3 (Hold) [6]

As the earnings season unfolds, the prospects of the Consumer Staples sector look mixed. While companies with a strong brand position, diversified portfolios and effective cost management are poised to shine, others may find it difficult to maintain momentum amid volatile consumption trends and cost concerns. Known for its defensive characteristics and essential product offerings, the Consumer Staples sector comprises a wide array of companies, including household goods, food and beverage manufacturers, and ...

Core Viewpoint - The market anticipates Church & Dwight (CHD) will report a year-over-year increase in earnings driven by higher revenues for the quarter ending December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is expected on January 31, 2025, with a consensus EPS estimate of $0.77, reflecting an 18.5% increase year-over-year. Revenues are projected to be $1.56 billion, up 2.4% from the previous year [3][4]. Estimate Revisions - The consensus EPS estimate has been revised 0.22% higher in the last 30 days, indicating a positive reassessment by analysts [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +0.11%, suggesting a likelihood of beating the consensus EPS estimate. The stock currently holds a Zacks Rank of 3 [11][10]. Historical Performance - Church & Dwight has consistently beaten consensus EPS estimates, achieving this in the last four quarters, including a surprise of +16.18% in the most recent quarter [12][13]. Conclusion - Church & Dwight is positioned as a strong candidate for an earnings beat, but investors should consider additional factors influencing stock performance beyond earnings results [14][16].

Albert Anthony is the pen name / stage name of markets analyst, contributor & host of The Future Investor, on the global investor platform Seeking Alpha, where he has covered over +200 companies, provides general markets commentary, and rates stocks in multiple sectors, while having grown a fan base of over +1K followers since 2023. Going beyond the investor platform, he is also a hobby investor of his own home-based fund called The Future Investor Fund, and talks investor topics on his Future Investor Chan ...

Core Insights - Church & Dwight Co., Inc. (CHD) is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 28.24, which is higher than the industry average of 22.11 and the S&P 500's 22.21, raising concerns about meeting investor expectations [1] - The company is facing challenges due to shifting consumer spending patterns, with a notable slowdown in dollar consumption growth from 4.5% to approximately 2.5% in July 2024 [5] - Despite these challenges, Church & Dwight remains optimistic about its brand performance and expects its portfolio to outpace category growth, projecting organic revenue growth of about 4% for the full year [6] Financial Performance - The Zacks Consensus Estimate for earnings per share has seen upward revisions, with current and next fiscal year estimates increased by 0.3% to $3.44 and by 0.5% to $3.74 per share, indicating expected year-over-year growth rates of around 8.5% and 8.7% respectively [9] - Reported sales growth is anticipated to be slightly lower at approximately 3.5% due to divestitures and adverse currency impacts [6] Market Position and Strategy - Online sales now account for 20.7% of global sales, with the company focusing on expanding its direct-to-consumer platforms and optimizing its omnichannel presence [7] - Continued innovation, such as ARM & HAMMER Power Sheets and TheraBreath's Deep Clean Oral Rinse, is driving growth and enhancing market presence [8] - The company has been increasing marketing expenses, expected to exceed 11% of net sales in 2024, to enhance brand awareness and drive long-term momentum [18] Challenges and Outlook - Church & Dwight's shares have lost 4.5% over the past month, slightly better than the industry's 4.9% dip but worse than the broader Consumer Staples' 4.3% decline [15] - The company remains cautious about U.S. consumer trends and category growth rates as it heads into the fourth quarter, despite some improvement in consumption during September and October [17] - The company's strong brand equity and pricing power allow it to pass on cost increases to consumers with minimal impact on demand, as evidenced by its robust performance in the third quarter of 2024 [19]

Company Overview - Church & Dwight Co., Inc. is a leading U.S. producer of sodium bicarbonate, known for its household, personal care, and specialty products [15]. Investment Insights - Church & Dwight (CHD) holds a Zacks Rank of 3 (Hold) with a VGM Score of B, indicating a solid position in the market [16]. - The company is projected to experience year-over-year earnings growth of 8.8% for the current fiscal year, supported by positive revisions from analysts [16]. - The Zacks Consensus Estimate for CHD's earnings has increased by $0.02 to $3.45 per share, reflecting a favorable outlook [16]. - CHD has an average earnings surprise of 10%, suggesting it has a history of exceeding earnings expectations [16]. - With a strong Zacks Rank and favorable Growth and VGM Style Scores, CHD is recommended for investors' consideration [17].

Financial Performance - Net loss for Q3 2024 was $75.1 million, compared to a net income of $177.5 million in Q3 2023[6] - Comprehensive loss for Q3 2024 was $64.2 million, compared to a comprehensive income of $175.9 million in Q3 2023[6] - Net income for Q3 2024 was $177.5 million, compared to $203.2 million in Q1 2023 and $221.2 million in Q2 2023[12][13] - Net income for the nine months ended September 30, 2024, was $396.1 million, down from $601.9 million in the prior year period[10] - Net sales for the three months ended September 30, 2024 increased by 3.8% to $1,510.6 million compared to $1,455.9 million in the same period in 2023[84] - Gross profit for the three months ended September 30, 2024 increased by 5.7% to $683.1 million, with gross margin improving by 80 basis points to 45.2%[84] - Net sales for the nine months ended September 30, 2024 were $4,525.1 million, a 4.3% increase compared to $4,339.9 million in the same period in 2023[85] - Gross profit for the nine months ended September 30, 2024 was $2,082.2 million, a 9.2% increase compared to $1,907.2 million in the same period in 2023[85] - Marketing expenses for the three months ended September 30, 2024 increased by 10.7% to $185.8 million, representing 12.3% of net sales, up 80 basis points from the same period in 2023[89] - SG&A expenses for the three months ended September 30, 2024 were $231.7 million, a 4.0% increase compared to $222.7 million in the same period in 2023[84] - The effective tax rate for the three months ended September 30, 2024 was a benefit of 25.9%, impacted by the non-cash VMS impairment charge[93] - Interest income for the three months ended September 30, 2024 increased by $6.1 million to $10.6 million, primarily due to the favorable Waterpik tariff ruling and higher interest rates[92] Cash Flow and Liquidity - Cash and cash equivalents increased to $752.1 million as of September 30, 2024, up from $344.5 million at the end of 2023[8] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $863.9 million, up from $795.1 million in the same period of 2023[10] - Net change in cash and cash equivalents was $407.6 million for the nine months ended September 30, 2024, up from $303.0 million in the same period of 2023[10] - Cash equivalents increased to $571.9 million as of September 30, 2024, compared to $217.7 million as of December 31, 2023[37] - Net cash provided by operating activities increased by $68.8 to $863.9 in the first nine months of 2024, compared to $795.1 in the same period in 2023, primarily due to higher cash earnings[118] - Net cash used in investing activities was $138.1 in the first nine months of 2024, primarily for property, plant, and equipment additions ($125.2) and the Graphico Acquisition ($19.9)[119] - Net cash used in financing activities was $318.3 in the first nine months of 2024, reflecting $200.4 in net debt payments and $207.4 in cash dividend payments, partially offset by $90.3 from stock option exercises[119] - The company anticipates capital expenditure program costs of approximately $180.0 in 2024, primarily for manufacturing capacity investments in laundry and litter to support future sales growth[117] - The company repaid the remaining $200.0 of its Term Loan due December 22, 2024, with cash on hand in Q1 2024[114] Assets and Liabilities - Total current assets rose to $2,016.7 million as of September 30, 2024, compared to $1,529.7 million at the end of 2023[8] - Accounts receivable increased to $555.3 million, up from $526.9 million at the end of 2023, indicating higher sales activity[8] - Inventories grew to $658.5 million, up from $613.3 million at the end of 2023, reflecting increased production or slower sales turnover[8] - Total liabilities decreased to $4,472.5 million, down from $4,713.8 million at the end of 2023, primarily due to reductions in current liabilities[8] - Long-term debt as of September 30, 2024, is $2,208.2 million, compared to $2,202.2 million at December 31, 2023[62] - The company's short-term borrowings as of September 30, 2024, decreased to $3.4 million from $3.9 million at December 31, 2023[62] - Accounts payable as of September 30, 2024, increased to $705.9 million from $630.6 million at December 31, 2023[60] - The company's lease liabilities as of September 30, 2024, total $201.3 million, with current lease liabilities at $30.4 million and long-term lease liabilities at $170.9 million[58] - Lease costs for the nine months ended September 30, 2024, amounted to $29.8 million, compared to $23.5 million for the same period in 2023[58] - The company's minimum annual rentals under lease agreements, including reasonably assured renewal options, total $241.2 million, with the present value of lease liabilities at $201.3 million[59] Impairments and Amortization - Tradename and other asset impairments were $357.1 million for the nine months ended September 30, 2024, compared to $0.0 million in the same period of 2023[10] - The company recorded a $281.3 million impairment charge for the VITAFUSION and L'IL CRITTERS trade names due to declining market share and profitability[50][51] - The company recorded a $75.8 million pre-tax impairment charge for long-lived assets supporting the VMS business, including $60.0 million for PP&E and $15.8 million for customer relationship intangible assets[52] - The total VMS impairment charges for the third quarter of 2024 amounted to $357.1 million, including trade name, customer relationship intangible asset, and PP&E impairments[54] - Intangible amortization expense for the third quarter of 2024 was $30.7 million, with an estimated annual expense of $117.0 million for 2024[47] - Intangible amortization expense for the first nine months of 2024 was $92.2 million, with an estimated annual expense of $117.0 million for 2024[47] Acquisitions and Divestitures - The company acquired Graphico, Inc. for $19.9 million, with annual net sales of $38.0 million in 2023, aiming to expand in the Asia-Pacific region[41] - The fair value of Graphico's net assets at acquisition includes $8.4 million for customer relationship intangible assets and $2.8 million for goodwill[42] - The company acquired Hero Cosmetics, Inc. for $546.8 million, with annual net sales of $179.0 million in 2022, managed in the Consumer Domestic segment[43] - The fair value of Hero's net assets at acquisition includes $400.0 million for the trade name and $156.1 million for goodwill[44] - The company sold its Passport food safety business in the second quarter of 2024 for cash proceeds of $6.6 million, resulting in a gain of $0.1 million[81] - The company exited the MEGALAC supplement portion of its Animal Nutrition business in the first quarter of 2024, with net sales for the nine months ended September 30, 2024 being $7.6 million compared to $29.7 million in the same period in 2023[80] Segment Performance - The company's Consumer Domestic segment generated $1,170.8 million in net sales for Q3 2024, compared to $1,133.1 million in Q3 2023[76] - The company's Consumer International segment generated $267.7 million in net sales for Q3 2024, compared to $244.4 million in Q3 2023[76] - The company's Specialty Products Division (SPD) generated $72.1 million in net sales for Q3 2024, compared to $78.4 million in Q3 2023[76] - The company's total consolidated net sales were $1,510.6 million for Q3 2024, compared to $1,455.9 million in Q3 2023[77] - Consumer Domestic net sales increased by 3.3% to $1,170.8 million in Q3 2024 compared to Q3 2023, driven by growth in HERO® acne treatment products and ARM & HAMMER® baking soda[101] - Consumer International net sales grew by 9.5% to $267.7 million in Q3 2024, driven by OXICLEAN® stain removers and THERABREATH® mouth wash[103] - SPD net sales decreased by 8.0% to $72.1 million in Q3 2024 due to the exit of product lines, including the MEGALAC supplement and Passport food safety business[108] - Consumer Domestic loss before income taxes was $(107.1) million in Q3 2024, impacted by a $327.4 million non-cash impairment charge[102] - Consumer International loss before income taxes was $(4.7) million in Q3 2024, impacted by a $29.7 million non-cash impairment charge[107] - SPD income before income taxes increased by $1.2 to $7.4 in Q3 2024, driven by favorable price/mix ($2.6), lower manufacturing costs ($1.0), and reduced SG&A and marketing costs ($0.5 and $0.1 respectively), partially offset by lower sales volumes ($3.0) due to product line exits[110] Stockholders' Equity and Share Repurchases - Total stockholders' equity grew to $4,193.7 million as of September 30, 2024, up from $3,489.9 million at the end of 2022[12][13] - Retained earnings reached $6,200.9 million as of September 30, 2024, up from $5,524.6 million at the end of 2022[12][13] - Additional paid-in capital increased to $534.7 million as of September 30, 2024, from $366.2 million at the end of 2022[12][13] - Treasury stock decreased to $(2,817.4) million as of September 30, 2024, from $(2,665.3) million at the end of 2022[12][13] - As of September 30, 2024, there remains $658.9 million of share repurchase availability under the 2021 Share Repurchase Program[35] - The company declared a 4% increase in the regular quarterly dividend to $0.28375 per share, raising the annual dividend payout from $267.0 to approximately $276.0[114] Research and Development - Research and development expenses increased to $36.0 million in Q3 2024 from $30.3 million in Q3 2023[16] Stock-Based Compensation - Stock-based compensation expense and stock option plan transactions totaled $30.5 million in Q3 2024[12] - Stock compensation expense related to stock option awards increased to $24.8 million for the nine months ended September 30, 2024, up from $22.7 million in the same period in 2023[28] - The company granted 105,600 RSUs with a total fair value of $10.8 million during the nine months ended September 30, 2024, compared to 119,570 RSUs with a total fair value of $10.3 million in the same period in 2023[30] - Restricted stock expense associated with the Hero Acquisition decreased to $17.2 million for the nine months ended September 30, 2024, down from $21.9 million in the same period in 2023[31] - The company granted 19,960 PSUs to members of the Executive Leadership Team in the first quarter of 2024, valued at a weighted average grant date fair value of $122.24 per PSU[32] Debt and Financing - Long-term debt repayments amounted to $200.6 million for the nine months ended September 30, 2024, consistent with $200.0 million in the same period of 2023[10] - The fair value of 3.15% Senior notes due August 1, 2027 decreased to $415.1 million as of September 30, 2024, compared to $406.9 million as of December 31, 2023[37] - The notional amount of foreign exchange contracts designated as hedging instruments decreased from $228.9 million on December 31, 2023, to $219.7 million on September 30, 2024[40] Commitments and Guarantees - The company has an annual commitment to purchase 240,000 tons of sodium-based raw materials at the prevailing market price under a partnership agreement[65] - The company had commitments of approximately $408.6 million as of September 30, 2024, including raw materials, packaging supplies, and services[66] - The company had guarantees and letters of credit totaling $6.0 million as of September 30, 2024[66] - The company deferred an additional cash payment of $20.0 million related to the Zicam Acquisition, payable five years from the closing if not used for indemnity obligations[67] - The company deferred an additional cash payment of $14.0 million related to the TheraBreath Acquisition, with installments of $2.0 million paid in January 2024, $7.0 million to be paid in December 2024, and $5.0 million in December 2025[68] - The company deferred an additional cash payment of $8.0 million related to the Hero Acquisition, payable five years from the closing if not used for indemnity obligations[69] Other Financial Metrics - The company's seven "power brands" represent approximately 70% of its net sales and profits[79] - The company received a favorable tariff ruling from the U.S. government, resulting in $37.6 million in cash refunds (pre-tax) for the nine months ended September 30, 2024[81] - The company's equity in earnings from affiliates Armand and ArmaKleen totaled $3.0 million in Q3 2024, down from $1.7 million in Q3 2023[96] - The Graphico acquisition contributed 1.9% to Consumer International net sales growth in Q3 2024[103] - Excluding divestitures, SPD net sales increased in Q3 2024 due to growth in animal nutrition and specialty chemicals segments[109] - Corporate segment income before income taxes rose to $3.0 in Q3 2024 from $1.7 in Q3 2023, while the nine-month income decreased to $7.2 in 2024 from $8.1 in 2023, following the sale of a 50% interest in Armakleen[111] - The cash conversion cycle increased by 2 days to 29 days in Q3 2024, driven by a 6-day increase in DSO and a 5-day decrease in DIO[119]