Core Viewpoint - Church & Dwight (CHD) reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.84 per share, and showing a slight increase from $0.92 per share a year ago, indicating a positive earnings surprise of 10.71% [1][2] Financial Performance - The company achieved revenues of $1.51 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.21% and reflecting a year-over-year increase from $1.45 billion [2] - Over the last four quarters, Church & Dwight has consistently exceeded consensus EPS estimates [2] Stock Performance - Church & Dwight shares have increased approximately 5.8% since the beginning of the year, while the S&P 500 has gained 14.2%, indicating underperformance relative to the broader market [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, with current consensus EPS estimates at $0.84 for the upcoming quarter and $3.46 for the current fiscal year [4][7] - The Zacks Rank for Church & Dwight is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Soap and Cleaning Materials industry, to which Church & Dwight belongs, is currently ranked in the top 31% of over 250 Zacks industries, indicating a favorable industry outlook [8]

[Executive Summary & Q2 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q2%20Highlights) Church & Dwight exceeded Q2 2024 expectations with strong organic sales growth and improved margins across all divisions [Q2 2024 Performance Overview](index=1&type=section&id=Q2%202024%20Performance%20Overview) Church & Dwight exceeded Q2 2024 outlook with stronger sales growth and gross margin expansion from broad organic growth Q2 2024 Performance Metrics | Metric | Q2 2024 Performance | | :------------------ | :------------------ | | Net Sales | +3.9% to $1,511.2 million | | Organic Sales | +4.7% | | Adjusted Gross Margin | +150 basis points | | Reported EPS | $0.99 (+11.2%) | | Adjusted EPS | $0.93 (+1.1%) | [CEO Commentary on Q2 Performance](index=1&type=section&id=CEO%20Commentary%20on%20Q2%20Performance) CEO Matthew Farrell highlighted strong Q2 results driven by brand strength, new products, and volume-led organic growth - All three divisions delivered organic growth, with **volume** being the primary driver[3](index=3&type=chunk) - Marketing as a percentage of sales increased **100 basis points to 10.1%**[3](index=3&type=chunk)[6](index=6&type=chunk) - Global online sales grew to **21.2%** of total consumer sales in Q2[3](index=3&type=chunk) Q2 2024 Organic Sales Growth by Division | Division | Organic Sales Growth | | :------------------------ | :------------------- | | Domestic Division | +3.8% | | International Division | +9.3% | | Specialty Products Division | +3.9% | [Q2 2024 Financial Review](index=3&type=section&id=Q2%202024%20Financial%20Review) The company's Q2 2024 financial review highlights strong consumer sales, significant gross margin expansion, and increased strategic investments [Sales Performance by Division](index=3&type=section&id=Sales%20Performance%20by%20Division) Consumer Domestic and International divisions achieved strong net and organic sales growth, despite a net sales decrease in Specialty Products Q2 2024 Sales Performance by Division | Division | Net Sales ($M) | Net Sales Change | Organic Sales Change | | :----------------------- | :------------- | :--------------- | :------------------- | | Consumer Domestic | $1,170.6 | +3.8% | +3.8% | | Consumer International | $263.7 | +9.0% | +9.3% | | Specialty Products | $76.9 | -8.6% | +3.9% | - Consumer Domestic growth was led by THERABREATH™ mouthwash, ARM & HAMMER™ Cat Litter, HERO™ acne products, ARM & HAMMER™ Liquid Detergent, and XTRA™ Liquid Detergent[5](index=5&type=chunk) - Consumer International growth was led by HERO, THERABREATH and vitamins[5](index=5&type=chunk) [Gross Margin and Operating Expenses](index=3&type=section&id=Gross%20Margin%20and%20Operating%20Expenses) Reported gross margin significantly increased due to a one-time tariff ruling, with adjusted gross margin expanding from productivity and mix Q2 2024 Gross Margin and Expenses | Metric | Q2 2024 Value | Change (bps) | | :--------------------------- | :------------ | :----------- | | Reported Gross Margin | 47.1% | +320 | | Adjusted Gross Margin | 45.4% | +150 | | Marketing Expense (% of Net Sales) | 10.1% | +100 | | Adjusted SG&A (% of Net Sales) | 14.4% | +20 | - Reported gross margin increase reflects a **one-time gain on a favorable tariff ruling**[6](index=6&type=chunk) - Adjusted gross margin expansion was due to improved productivity, volume, and mix, net of higher manufacturing costs[6](index=6&type=chunk) [Income from Operations and Tax Rate](index=3&type=section&id=Income%20from%20Operations%20and%20Tax%20Rate) Income from operations increased, with adjusted income also rising, while the effective tax rate increased due to lower prior-year stock option exercises Q2 2024 Income from Operations and Tax Rate | Metric | Q2 2024 Value ($M) | Change YoY | | :-------------------------- | :----------------- | :--------- | | Income from Operations | $336.9 | | | Adjusted Income from Operations | $316.0 | +5.0% | | Other Expense | -$19.5 | -$7.8 million | | Effective Tax Rate | 24.0% | +610 basis points | - The increase in effective tax rate was primarily due to higher stock option exercises in Q2 2023[7](index=7&type=chunk) [Operating Cash Flow and Financial Position](index=3&type=section&id=Operating%20Cash%20Flow%20and%20Financial%20Position) Cash from operations slightly decreased in H1 due to working capital, but the full-year outlook was raised, with increased capital expenditures H1 2024 Operating Cash Flow and Financial Position | Metric | H1 2024 Value ($M) | Change YoY | | :-------------------------- | :----------------- | :--------- | | Cash from Operations | $499.9 | -$9.3 million | | Capital Expenditures | $76.6 | +$13.4 million | | Cash on Hand (June 30, 2024) | $491.7 | | | Total Debt (June 30, 2024) | $2.2 billion | | - Full year cash flow from operations is now expected to be approximately **$1.08 billion** (previously $1.05 billion)[8](index=8&type=chunk) [Product Innovation](index=4&type=section&id=Product%20Innovation) The company drives growth through new product introductions, expanding existing brands into new segments and offering innovative solutions [Key New Product Launches](index=4&type=section&id=Key%20New%20Product%20Launches) The company is encouraged by consumer enthusiasm for 2024 new product introductions, expanding existing brands with innovative solutions - ARM & HAMMER™ Laundry launched Deep Clean™ Liquid and Unit Dose Detergent, and POWER SHEETS™ Laundry Detergent (now in brick & mortar)[9](index=9&type=chunk) - ARM & HAMMER™ Hardball™ Clumping Litter expanded nationally, a plant-based, lightweight litter[10](index=10&type=chunk) - THERABREATH™ entered the antiseptic segment with Deep Clean Oral Rinse, targeting **30%** of the mouthwash category[10](index=10&type=chunk) - BATISTE™ introduced Sweat Activated and Touch Activated dry shampoos for longer-lasting results[10](index=10&type=chunk) - HERO™ continues to drive acne category growth with new patch innovations and adjacent products like Dissolve Away Daily Cleansing Balm[11](index=11&type=chunk) [2024 Full Year and Q3 Outlook](index=4&type=section&id=2024%20Full%20Year%20and%20Q3%20Outlook) The company provided its 2024 full-year and Q3 outlook, tightening sales growth while raising gross margin and cash flow forecasts, with increased Q3 marketing [Sales and Margin Outlook](index=4&type=section&id=Sales%20and%20Margin%20Outlook) Despite moderating category consumption, the company expects brands to outperform, tightening full-year organic sales growth while raising adjusted gross margin 2024 Full Year Sales and Margin Outlook | Metric | New Outlook | Previous Outlook | | :---------------------------- | :----------------- | :----------------- | | Organic Sales Growth | ~4% | 4-5% | | Reported Sales Growth | ~3.5% | Slightly higher | | Adjusted Gross Margin Expansion | ~100-110 basis points | 75 basis points | | Marketing as % of Sales | ~11% | ~11% | - Reported sales growth is slightly lower due to divestitures and negative currency impact[12](index=12&type=chunk) [Earnings and Cash Flow Outlook](index=4&type=section&id=Earnings%20and%20Cash%20Flow%20Outlook) The company raised its full-year reported EPS growth and cash flow from operations outlook, maintaining the lower end of adjusted EPS guidance 2024 Full Year Earnings and Cash Flow Outlook | Metric | New Outlook | Previous Outlook | | :-------------------------- | :----------------- | :----------------- | | Reported EPS Growth | ~12-13% | 9.5-10.5% | | Adjusted EPS Growth | Lower end of 8-9% | 8-9% | | Cash Flow from Operations | ~$1.08 billion | ~$1.05 billion | | Expected Tax Rate | ~23% | ~23% | [Capital Allocation and Q3 Specific Outlook](index=5&type=section&id=Capital%20Allocation%20and%20Q3%20Specific%20Outlook) Capital expenditures are higher in 2024 due to capacity investments, with Q3 expecting sales growth, margin expansion, and lower adjusted EPS due to marketing 2024 Capital Expenditures and Q3 Outlook | Metric | Outlook | | :-------------------------- | :----------------- | | 2024 Capital Expenditures | ~$180 million | | 2025 Capital Spending | ~2% of sales | | Q3 Reported Sales Growth | ~2.5% | | Q3 Organic Sales Growth | ~3% | | Q3 Adjusted EPS | $0.67 (down 10% YoY) | - Capital allocation priorities remain unchanged, with an emphasis on accretive acquisitions of fast-moving consumable products[15](index=15&type=chunk) - Q3 Adjusted EPS is expected to be **down 10%** versus last year's adjusted Q3 EPS due to a significant increase in marketing spending[15](index=15&type=chunk) [Company Information & Disclaimers](index=5&type=section&id=Company%20Information%20%26%20Disclaimers) This section provides company background, highlights sustainability efforts, and outlines disclaimers for forward-looking statements and non-GAAP measures [Webcast and Company Profile](index=5&type=section&id=Webcast%20and%20Company%20Profile) Church & Dwight, a leading U.S. sodium bicarbonate producer, markets diverse personal care and household products, and hosted a Q2 2024 webcast - A webcast to discuss Q2 2024 results was held on August 2, 2024[16](index=16&type=chunk) - Founded in 1846, Church & Dwight is the leading U.S. producer of sodium bicarbonate (baking soda)[16](index=16&type=chunk) - The company markets brands such as ARM & HAMMER®, TROJAN®, OXICLEAN®, BATISTE®, THERABREATH®, and HERO®[16](index=16&type=chunk) [Sustainability Initiatives](index=5&type=section&id=Sustainability%20Initiatives) Church & Dwight demonstrates a long-standing commitment to sustainability through early adoption of recycled packaging and public recognition - Began using recycled paperboard for household product packaging in the early 1900s[17](index=17&type=chunk) - ARM & HAMMER brand introduced the first nationally distributed, phosphate-free detergent in 1970[17](index=17&type=chunk) - Received public recognition in 2023, including Newsweek Magazine's America's Most Responsible and America's Greenest Companies lists[17](index=17&type=chunk) [Forward-Looking Statements & Non-GAAP Measures](index=7&type=section&id=Forward-Looking%20Statements%20%26%20Non-GAAP%20Measures) The press release contains forward-looking statements subject to risks and uncertainties, and includes non-GAAP financial measures with reconciliations - Forward-looking statements are based on intentions, plans, expectations, and beliefs, subject to risks and uncertainties[17](index=17&type=chunk)[18](index=18&type=chunk) - Factors that could cause actual results to differ include market growth decline, economic conditions, raw material/energy prices, supply chain disruptions, and regulatory changes[18](index=18&type=chunk) - Non-GAAP financial measures are used for internal analysis and investor information, with reconciliations to GAAP measures provided[19](index=19&type=chunk)[25](index=25&type=chunk) [Financial Statements (Unaudited)](index=10&type=section&id=Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated statements of income, balance sheets, and cash flow, detailing financial performance and position [Condensed Consolidated Statements of Income](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The condensed consolidated statements of income detail the company's financial performance for Q2 and H1 2024 versus prior year Condensed Consolidated Statements of Income (Unaudited) | (In millions, except per share data) | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Sales | $1,511.2 | $1,454.2 | $3,014.5 | $2,884.0 | | Gross Profit | $712.1 | $638.9 | $1,399.1 | $1,260.9 | | Income from Operations | $336.9 | $293.6 | $641.9 | $585.5 | | Net Income | $243.5 | $221.2 | $471.2 | $424.4 | | Diluted EPS | $0.99 | $0.89 | $1.91 | $1.72 | | Dividends per share | $0.28 | $0.27 | $0.57 | $0.54 | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets present the company's financial position as of June 30, 2024, and December 31, 2023 Condensed Consolidated Balance Sheets (Unaudited) | (Dollars in millions) | June 30, 2024 | December 31, 2023 | | :--------------------------------- | :------------ | :---------------- | | **Assets** | | | | Cash and Cash Equivalents | $491.7 | $344.5 | | Total Current Assets | $1,755.2 | $1,529.7 | | Total Assets | $8,762.1 | $8,569.2 | | **Liabilities and Stockholders' Equity** | | |\ | Total Current Liabilities | $1,149.7 | $1,422.0 | | Long-Term Debt | $2,207.6 | $2,202.2 | | Stockholders' Equity | $4,305.5 | $3,855.4 | | Total Liabilities and Stockholders' Equity | $8,762.1 | $8,569.2 | [Condensed Consolidated Statements of Cash Flow](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) The condensed consolidated statements of cash flow provide an overview of cash generated from operating, investing, and financing activities for H1 2024 Condensed Consolidated Statements of Cash Flow (Unaudited) | (Dollars in millions) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net cash from operating activities | $499.9 | $509.2 | | Net cash (used in) investing activities | $(91.5) | $(69.2) | | Net cash (used in) financing activities | $(257.4) | $(315.4) | | Net change in cash and cash equivalents | $147.2 | $126.6 | [Product Line Net Sales](index=13&type=section&id=Product%20Line%20Net%20Sales) This section details the company's net sales performance by product line for Q2 and H1 2024, highlighting growth drivers [Six Months Ended 6/30/2024](index=13&type=section&id=Six%20Months%20Ended%206%2F30%2F2024) Total net sales for H1 2024 increased by **4.5%**, driven by strong growth in Consumer International and Household Products Product Line Net Sales (Six Months Ended 6/30/2024) | Product Line | 6/30/2024 ($M) | 6/30/2023 ($M) | Percent Change | | :--------------------------- | :------------- | :------------- | :------------- | | Household Products | $1,292.1 | $1,220.8 | 5.8% | | Personal Care Products | $1,043.7 | $1,024.3 | 1.9% | | Consumer Domestic | $2,335.8 | $2,245.1 | 4.0% | | Consumer International | $518.7 | $472.5 | 9.8% | | Total Consumer Net Sales | $2,854.5 | $2,717.6 | 5.0% | | Specialty Products Division | $160.0 | $166.4 | -3.8% | | Total Net Sales | $3,014.5 | $2,884.0 | 4.5% | [Three Months Ended 6/30/2024](index=13&type=section&id=Three%20Months%20Ended%206%2F30%2F2024) For Q2, total net sales increased by **3.9%**, with Consumer International showing the highest growth, while Specialty Products declined Product Line Net Sales (Three Months Ended 6/30/2024) | Product Line | 6/30/2024 ($M) | 6/30/2023 ($M) | Percent Change | | :--------------------------- | :------------- | :------------- | :------------- | | Household Products | $653.2 | $619.2 | 5.5% | | Personal Care Products | $517.4 | $509.0 | 1.7% | | Consumer Domestic | $1,170.6 | $1,128.2 | 3.8% | | Consumer International | $263.7 | $241.9 | 9.0% | | Total Consumer Net Sales | $1,434.3 | $1,370.1 | 4.7% | | Specialty Products Division | $76.9 | $84.1 | -8.6% | | Total Net Sales | $1,511.2 | $1,454.2 | 3.9% | [Non-GAAP Financial Measures & Reconciliations](index=13&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section defines non-GAAP financial measures and provides detailed reconciliations for key performance indicators [Definitions of Non-GAAP Measures](index=13&type=section&id=Definitions%20of%20Non-GAAP%20Measures) This section defines non-GAAP financial measures, including Organic Sales Growth and Adjusted EPS, explaining their utility for investors - Organic Sales Growth excludes the effect of acquisitions, divestitures, and foreign exchange rate changes to assess consistent sales trends[26](index=26&type=chunk) - Adjusted Gross Margin, SG&A, Income from Operations, and EPS are GAAP measures adjusted to exclude significant one-time items, providing insight into underlying business trends[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [Organic Sales Reconciliation](index=15&type=section&id=Organic%20Sales%20Reconciliation) Reconciliation tables show organic sales growth for Q2 and H1 2024, adjusting reported sales for acquisitions, divestitures, and FX impacts Organic Sales Reconciliation (Three Months Ended 6/30/2024) (%) | | Total Company | Worldwide Consumer | Consumer Domestic | Consumer International | Specialty Products | | :----------------------- | :------------ | :----------------- | :---------------- | :--------------------- | :----------------- | | Reported Sales Growth | 3.9% | 4.7% | 3.8% | 9.0% | -8.6% | | Less: Acquisitions | 0.0% | 0.1% | 0.0% | 0.1% | 0.0% | | Add: FX / Other | 0.1% | 0.1% | 0.0% | 0.4% | 0.0% | | Add: Divestitures | 0.7% | 0.0% | 0.0% | 0.0% | 12.5% | | Organic Sales Growth | 4.7% | 4.7% | 3.8% | 9.3% | 3.9% | Organic Sales Reconciliation (Six Months Ended 6/30/2024) (%) | | Total Company | Worldwide Consumer | Consumer Domestic | Consumer International | Specialty Products | | :----------------------- | :------------ | :----------------- | :---------------- | :--------------------- | :----------------- | | Reported Sales Growth | 4.5% | 5.0% | 4.0% | 9.8% | -3.8% | | Less: Acquisitions | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | | Add: FX / Other | -0.1% | -0.1% | 0.0% | -0.6% | 0.0% | | Add: Divestitures | 0.5% | 0.0% | 0.0% | 0.0% | 9.3% | | Organic Sales Growth | 4.9% | 4.9% | 4.0% | 9.1% | 5.5% | [Adjusted Gross Margin Reconciliation](index=15&type=section&id=Adjusted%20Gross%20Margin%20Reconciliation) The reconciliation shows Q2 2024 reported gross margin was significantly impacted by a one-time favorable tariff ruling Adjusted Gross Margin Reconciliation (Q2 2024) | (Dollars in millions) | For the quarter ended June 30, 2024 | % of NS | | :---------------------------- | :---------------------------------- | :------ | | Gross Margin - Reported | $712.1 | 47.1% | | Tariff Ruling | $(26.1) | -1.7% | | Gross Margin - Adjusted (non-GAAP) | $686.0 | 45.4% | - Adjusted Gross Margin increased by **150 basis points** year-over-year[32](index=32&type=chunk) [Adjusted SG&A Reconciliation](index=16&type=section&id=Adjusted%20SG%26A%20Reconciliation) The reconciliation for SG&A expenses shows adjustments primarily related to Hero Restricted Stock charges, resulting in a slightly higher adjusted SG&A Adjusted SG&A Reconciliation (Q2 2024) | (Dollars in millions) | For the quarter ended June 30, 2024 | % of NS | | :---------------------------- | :---------------------------------- | :------ | | SG&A - Reported | $222.8 | 14.7% | | Hero Restricted Stock | $(5.2) | -0.3% | | SG&A - Adjusted (non-GAAP) | $217.6 | 14.4% | - Adjusted SG&A increased by **20 basis points** year-over-year[33](index=33&type=chunk) [Adjusted Income From Operations Reconciliation](index=16&type=section&id=Adjusted%20Income%20From%20Operations%20Reconciliation) The reconciliation for income from operations highlights the impact of Hero Restricted Stock and the tariff ruling on reported figures Adjusted Income From Operations Reconciliation (Q2 2024) | (Dollars in millions) | For the quarter ended June 30, 2024 | % of NS | | :---------------------------- | :---------------------------------- | :------ | | Income From Operations - Reported | $336.9 | 22.3% | | Hero Restricted Stock | $5.2 | 0.3% | | Tariff Ruling | $(26.1) | -1.7% | | Income From Operations - Adjusted (non-GAAP) | $316.0 | 20.9% | - Adjusted Income From Operations increased by **30 basis points** year-over-year[34](index=34&type=chunk) [Adjusted EPS Reconciliation](index=16&type=section&id=Adjusted%20EPS%20Reconciliation) The reconciliation for diluted EPS shows reported EPS was **$0.99**, while adjusted EPS was **$0.93**, reflecting specific adjustments Adjusted Diluted Earnings Per Share Reconciliation (Q2 2024) | | EPS ($) | | :-------------------------------- | :------ | | Diluted Earnings Per Share - Reported | $0.99 | | Hero Restricted Stock | $0.02 | | Tariff Ruling | $(0.08) | | Diluted Earnings Per Share - Adjusted (non-GAAP) | $0.93 | - Adjusted Diluted EPS increased by **1.1%** year-over-year[34](index=34&type=chunk) [Forecasted Sales and EPS Reconciliation](index=16&type=section&id=Forecasted%20Sales%20and%20EPS%20Reconciliation) This section provides a reconciliation of forecasted sales growth and diluted EPS for Q3 and full year 2024 Forecasted Sales Growth Reconciliation (%) | (Forecasted Sales Growth) | Q3 2024 | Full Year 2024 | | :------------------------ | :------ | :------------- | | Reported Sales Growth | 2.5% | 3.5% | | Organic Sales Growth | 3.0% | 4.0% | Forecasted Diluted EPS Reconciliation ($) | (Forecasted Diluted EPS) | Q3 2024 | Full Year 2024 | | :------------------------ | :------ | :------------- | | Reported EPS | $0.65 | $3.42 to $3.45 | | Adjusted EPS (non-GAAP) | $0.67 | $3.42 to $3.45 | - Q3 2024 Adjusted EPS is forecasted to be **down 9.5%** year-over-year[35](index=35&type=chunk)

Church & Dwight., Inc. (CHD) gears up to report its second-quarter fiscal 2024 earnings on Aug 2, before market open. The company is likely to register top-line growth while the bottom line is expected to decrease year over year. The Zacks Consensus Estimate for second-quarter revenues stands at $1,509 million, which indicates an increase of 3.8% from the year-ago quarter's reported figure. CHD boasts a strong earnings surprise record, having surpassed the consensus estimate in each of the last four quarter ...

The current level reflects an upward revision of 0.1% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies con ...

Core Insights - Church & Dwight (CHD) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2024 [1] - Revenue is projected to be $1.51 billion, reflecting a 3.8% increase from the same quarter last year [2] - The company's earnings surprise prediction model indicates a positive outlook for earnings performance [3][10] Estimate Revisions and Predictions - The Zacks Earnings ESP model shows that the Most Accurate Estimate for Church & Dwight is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.60% [15] - Historical performance indicates that Church & Dwight has previously exceeded consensus EPS estimates, with a surprise of +11.63% in the last reported quarter [16] - The combination of a positive Earnings ESP and a Zacks Rank of 3 suggests a likelihood of beating the consensus EPS estimate [10][25] Industry Context - Clorox (CLX), a competitor in the same industry, is expected to report earnings per share of $1.54, indicating a year-over-year decline of 7.8% [12] - Clorox's revenues are projected to be $1.97 billion, down 2.4% from the previous year [12] - The earnings report for both companies is set to be released on August 2, 2024, which could influence stock movements based on performance relative to expectations [13]

Core Viewpoint - The Zacks Style Scores, which include Value, Growth, and Momentum Scores, are designed to help investors identify stocks with the best potential to outperform the market over the next 30 days [1][4]. Group 1: Zacks Style Scores Overview - The Momentum Style Score focuses on capitalizing on price trends and earnings outlook changes, utilizing metrics like one-week price change and monthly earnings estimate percentage change [4]. - Each stock is rated from A to F based on its value, growth, and momentum characteristics, with higher scores indicating a better chance of outperforming the market [11]. - The Value Style Score identifies attractive stocks using financial ratios such as P/E and Price/Sales, while the Growth Style Score assesses future prospects through earnings and sales growth [12][13]. Group 2: Zacks Rank and Performance - The Zacks Rank, which leverages earnings estimate revisions, has shown that 1 (Strong Buy) stocks have produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5]. - Stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B are recommended for better investment outcomes [21]. - A stock with a lower Zacks Rank, even with high Style Scores, may still face downward price pressure due to a negative earnings outlook [17]. Group 3: Company Spotlight - Church & Dwight Co., Inc. (CHD) - Church & Dwight is a leading U.S. producer of sodium bicarbonate and offers a range of household and personal care products [7]. - The company has seen two analysts revise their earnings estimates higher for fiscal 2024, with the Zacks Consensus Estimate now at $3.46 per share, reflecting a 9.6% average earnings surprise [8]. - CHD holds a Zacks Rank of 3 (Hold) and has a Growth Style Score of A, forecasting a year-over-year earnings growth of 9.2% for the current fiscal year [18][23].

For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Church & Dwight (CHD) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question. Church & Dwight is one of 185 companies in the Consumer Staples ...

Industry Overview - The Zacks Soap and Cleaning Materials industry consists of companies manufacturing fast-moving consumer goods, including personal care, household, and specialty products [3] - Key segments include personal care (skin and hair care, deodorants, oral care) and household products (laundry care, cleaning agents, air care) [3] Current Challenges - Companies face challenges from higher manufacturing and logistics costs, increased commodity prices, and reduced volumes [1] - Elevated spending on advertising and sales promotions is expected to impact near-term margins [1] - Escalating raw material and logistic costs, particularly transportation, are hurting margins [6] Strategic Responses - Companies are implementing cost-cutting measures to support margins while enhancing product offerings and marketing efforts [1] - Emphasis on operational transformation, digital commerce growth, and innovation has been key to success despite macroeconomic challenges [2] - Investments in product development and eco-friendly ingredients are becoming increasingly important [4] Demand and Pricing Trends - Strong demand trends for consumer products and brands are boosting industry performance [2] - Companies have benefited from strategic pricing actions, improving sales trends [2][5] - Bold pricing initiatives are being adopted to combat rising costs due to inflation and supply chain issues [5] Industry Performance - The Zacks Soap and Cleaning Materials industry has outperformed the broader Zacks Consumer Staples sector, rising 12.7% in the past year, while the sector declined by 5.3% [10] - The industry currently holds a Zacks Industry Rank of 28, placing it in the top 11% of over 250 Zacks industries, indicating bright near-term prospects [8][9] Valuation Metrics - The industry is trading at a forward 12-month price-to-earnings (P/E) ratio of 22.75X, compared to the S&P 500's 21.91X and the sector's 17.01X [12] - Over the past five years, the industry's P/E ratio has ranged from 20.08X to 25.13X, with a median of 22.47X [12] Company Highlights - **Colgate-Palmolive**: Focused on innovation and expanding into new markets, with a Zacks Consensus Estimate indicating 3.9% sales growth and 9.3% earnings growth for 2024 [15] - **Henkel AG**: Benefits from a purposeful growth agenda and expects 12.8% earnings growth for 2024 [19] - **Church & Dwight**: Gaining from innovation and pricing strategies, with a 4.6% sales growth estimate for 2024 [22] - **Procter & Gamble**: Strong performance across all segments, with a 2.8% sales growth estimate for 2024 [25] - **Clorox**: Focused on operational efficiency and digital investments, with a 16.1% earnings growth estimate for 2024 [28]

Core Insights - Church & Dwight Co., Inc. (CHD) is leveraging strong consumer demand and effective pricing strategies to enhance its brand presence and productivity [1][2] - The company has seen a 5.2% increase in quarterly organic sales, attributed to a favorable product mix and a 1.5% increase in pricing [2] - Despite rising costs impacting gross margins, the company remains focused on innovation and strategic acquisitions to drive growth [10][8] Financial Performance - In the first quarter of 2024, Church & Dwight's gross margin was affected by inflation, although pricing and productivity gains helped mitigate some of the impact [10] - Marketing expenses rose by $29.7 million to $152 million in the first quarter of 2024, with adjusted SG&A expenses increasing by 80 basis points to 14.8% of net sales [17] Strategic Initiatives - The company signed an agreement to acquire Graphico, a Japanese distributor, for $35 million, aiming to enhance its presence in Japan and the APAC region [8] - Church & Dwight introduced two new products in the detergent category, ARM & HAMMER Deep Clean and ARM & HAMMER Power Sheets, which have shown promising early results in 2024 [9] Brand Portfolio - Church & Dwight has a robust portfolio with seven power brands, including ARM & HAMMER and OXICLEAN, which contribute nearly 70% of its revenues and profits [16] - The company has a history of acquisitions that have bolstered its top-line growth, starting with its initial brand, ARM & HAMMER [15] Market Position - Church & Dwight's shares have increased by 11.7% over the past six months, slightly trailing the industry's growth of 12.6% [18]

Pricing Actions Drive Growth Although compensated by pricing, volumes and productivity gains, Church & Dwight's gross margin was partly hurt by inflation in first-quarter 2024. In its last earnings call, management highlighted that it expects to witness a rise in manufacturing costs, mainly due to capacity-related investments, a rise in third-party manufacturing expenses and moderate commodity inflation. In 2022, Church & Dwight acquired the Hero Mighty Patch brand (or Hero) and other acne treatment product ...