MILWAUKEE--(BUSINESS WIRE)--Rockwell Automation Inc. (NYSE: ROK), the world’s largest company dedicated to industrial automation and digital transformation, today announced it has been selected by Church & Dwight Co., Inc. (NYSE: CHD) to strengthen the consumer goods company’s cybersecurity program. Church & Dwight chose Rockwell specifically to help build resiliency and minimize risks in its operational technology (OT) manufacturing security practices. The number of cyberattacks against manufacturing and ...

Church & Dwight (CHD) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Indivi ...

The Wall Street rally that saw major indexes hit all-time highs in early February has suddenly come to a halt, with markets turning volatile again last week. A hotter-than-expected inflation data has dimmed hopes of a rate cut by the Federal Reserve anytime soon.Investor confidence took a further hit after the release of the minutes of the Federal Reserve’s January FOMC meeting on Feb 20. The minutes of the meeting suggest that the Federal Reserve is in no hurry to cut interest rates and it will go for the ...

Financial Data and Key Metrics Changes - Church & Dwight reported strong revenue growth in 2023, achieving nearly 19% total shareholder return (TSR) and exceeding targeted earnings per share (EPS) growth of about 7% year-over-year, compared to an initial outlook of 0% to 4% [14][15] - The company generated over $1 billion in cash from operations, with a gross margin expansion of 220 basis points [14][15] - The updated evergreen model now targets 4% organic growth annually, an increase from the previous 3% [4][15] Business Line Data and Key Metrics Changes - The company has 14 power brands that account for 85% of revenues and profits, with a focus on seven key brands for future communication and growth: THERABREATH, VITAFUSION, HERO, ARM & HAMMER, WATERPIK, BATISTE, and OXICLEAN [10][11] - The U.S. business is expected to sustain a growth rate of 3% to 4%, while international growth is projected at 8% [18][43] - Specialty Products, a smaller segment, experienced an 8% decline in 2023, primarily due to challenges in the MEGALAC business [46][47] Market Data and Key Metrics Changes - The international business has been a significant growth driver, with expectations of 8% growth, supported by strong brand performance and investments in global markets [43][44] - The company reported that 20% of its sales are now online, with a goal to increase this to 30% by the end of the decade [9][42] Company Strategy and Development Direction - Church & Dwight aims to enhance its international presence and e-commerce capabilities, with a focus on leveraging its strong brand portfolio [44][45] - The company is committed to maintaining a disciplined approach to acquisitions, emphasizing the importance of finding high-growth, high-margin opportunities [13][60] - The management has indicated a shift towards a more streamlined communication strategy by focusing on seven key brands [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing steady U.S. growth, strong international performance, and consistent innovation as key drivers [9][16] - The company anticipates that gross margin improvements will continue, with expectations of 50 to 75 basis points of expansion in 2024 [18][20] - Management highlighted the importance of digital channels, noting that 70% of purchases are influenced by digital, and the company is investing heavily in this area [42] Other Important Information - The company plans to increase its dividend by 4% in 2024, continuing a 123-year history of consecutive dividend payments [24] - Church & Dwight has a strong balance sheet, with a leverage ratio expected to improve from 1.8 times at the end of 2023 to 1.6 times by 2024 [23] Q&A Session Summary Question: Discussion on M&A and learnings from recent acquisitions - Management noted the expansion of the M&A department to enhance deal flow, particularly outside the U.S., and emphasized the importance of being selective in acquisitions [58][59] Question: Context on the current deal environment and cash allocation - Management acknowledged the need to be discerning in acquisitions and clarified that they do not necessarily need to pursue larger deals, as demonstrated by the acquisition of THERABREATH [62][63]

U.S. stock markets are facing fluctuations in early 2024 after a sharp rally in 2023. The euphoria surrounding technology stocks evaporated as the yield on the benchmark 10-Year U.S. Treasury Note returned northward, trading well above 4%.This was primarily owing to the uncertainty regarding the time of the Fed’s first cut in the benchmark interest rate. Recently, several key Fed FOMC members said that although they believe that the rate hike regime is over, they are yet to be convinced that the economic co ...

EWING, N.J.--(BUSINESS WIRE)--Church & Dwight Co., Inc. (NYSE: CHD) will present at the 2024 Consumer Analyst Group of New York (CAGNY) Conference on Thursday, February 22, 2024, at 3:00 PM EST. The presentation will be broadcast on the company’s website. A replay of the webcast will be available following the event. Church & Dwight Co., Inc., founded in 1846, is the leading U.S. producer of sodium bicarbonate, popularly known as baking soda. The Company manufactures and markets a wide range of personal ca ...

Financial Performance - In 2023, net sales increased by 9.2% to $5,867.9 million compared to $5,375.6 million in 2022[38] - Gross profit for 2023 was $2,588.5 million, representing a gross margin of 44.1%, an increase of 220 basis points from 41.9% in 2022[38] - Selling, General & Administrative (SG&A) expenses decreased by 20.3% to $889.8 million, with SG&A as a percentage of net sales dropping to 15.2% from 20.8% in 2022[41] - Income from operations rose by 76.9% to $1,057.4 million, resulting in an operating margin of 18.0%, up 690 basis points from 11.1% in 2022[38] - Diluted net income per share increased by 81.5% to $3.05, compared to $1.68 in 2022[38] - Net cash provided by operating activities was $1,030.6 million in 2023, up from $885.2 million in 2022[123] - The company reported a net income of $755.6 million in 2023, compared to $413.9 million in 2022[123] Sales Performance - Consumer Domestic segment net sales grew by 10.7% to $4,571.2 million in 2023, up from $4,131.0 million in 2022[47] - The Consumer International segment saw a net sales increase of 8.9%, attributed to a 3.4% increase in product volumes sold and a 5.1% increase in pricing/product mix[72] - Net sales for Consumer Domestic increased by 10.7% as of December 31, 2023, driven by a 1.0% increase in product volumes sold and a 4.7% increase in pricing/product mix[101] - The Specialty Products Division (SPD) saw a decline in net sales, primarily due to reduced sales of the MEGALAC dairy supplement, leading to an exit from this business segment in Q1 2024[27] Expenses and Costs - Cost of sales for the year ended December 31, 2023, was $3.4 billion, an increase of 36% from $2.5 billion in 2022[138] - Selling, general and administrative expenses totaled $64.9 million in 2023, up from $32.6 million in 2022, representing a 99% increase[138] - Research and development expenses were $122.4 million in 2023, compared to $110.0 million in 2022, reflecting an increase of 11.5%[165] Cash Flow and Dividends - Cash dividends per share increased to $1.09 in 2023, up from $1.05 in 2022[93] - Cash and cash equivalents at the end of the period increased to $344.5 million in 2023 from $270.3 million in 2022[123] Debt and Financing - The company repaid $200.0 million of the Term Loan in 2023, with an additional $100.0 million repayment planned for January 2024[76] - The company has a term loan facility of $400.0 million due on December 22, 2024, with the interest rate linked to the Secured Overnight Financing Rate (SOFR)[104] Market and Competitive Landscape - The vitamin category is facing increased competition, with over 60 significant competitors, leading to a potential impairment risk for the VITAFUSION and LIL' CRITTERS trade name, which has a carrying value of $281.3 million[58] - The company competes in highly innovative household and personal care categories, which require significant advertising and promotion[214] - The specialty chemicals business faces intense competition influenced by capacity utilization and raw material costs[215] Strategic Focus and Future Plans - The company continues to focus on new product introductions and increased marketing spending to address sales pressures in key product categories[28] - The company plans to continue focusing on market expansion and new product development to drive future growth[126] - The company anticipates capital expenditures of approximately $180.0 million in 2024, primarily for manufacturing capacity investments[78] Segment Information - The company operates in three segments: Consumer Domestic, Consumer International, and Specialty Products Division, focusing on various personal care and household products[156] - The SPD segment accounted for approximately 5% of the company's consolidated net sales in 2023[209] Environmental and Social Responsibility - The Company has a focus on minimizing environmental impact, including increased renewable energy usage and reduced water consumption[198] - The Company emphasizes employee safety and wellness as top priorities, with policies designed to ensure compliance with OSHA standards[199] - The Company has received recognition for its progress in key areas of Environmental, Social, and Governance (ESG) from various third parties[200]

Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. 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? Let's take a closer look at the stock's year-to-date performance to find out.Church & Dwight is a member of our Consumer Staples group, which includes 193 different companies and currently sits at #13 in the Zacks Sector Rank. ...

Wall Street started 2024 on a high as stocks rallied on hopes that the Federal Reserve would soon begin to its rate cuts, with inflation sharply declining over the past year. The Dow, S&P 500 and Nasdaq ended January 1.2%, 1.6% and 1% higher, respectively.The consumer confidence level also touched a 25-month high in January, with the index reading coming in at 114.8. Investors now believe that the economy will have a softer landing than expected earlier.The Federal Reserve, at the end of its January FOMC me ...

Financial Data and Key Metrics Changes - The company reported a net sales growth of 9.2% for the full year 2023, exceeding the outlook of 9% [50] - Organic growth was 5.3%, surpassing the expected 5% [50] - Gross margin expanded by 220 basis points, reaching 44.1%, better than the anticipated 210 basis points [50][58] - Earnings per share (EPS) growth was reported at 8% to 10%, with adjusted EPS growth before MEGALAC being 8% to 10% [56] Business Line Data and Key Metrics Changes - The company has narrowed its focus to seven power brands, which account for 70% of revenues and profits, emphasizing their potential for global growth [5][14] - The ARM & HAMMER brand saw significant growth, with a share increase to 14.4% in the fabric care category [68] - THERABREATH and HERO brands reported substantial growth, with THERABREATH achieving 57% distribution growth and HERO growing from 0.2% to an 18% share in the acne care category [34][74] Market Data and Key Metrics Changes - The international market is expected to grow at 8%, with the company seeing strong growth across all subsidiary markets [4][86] - The company has a low private label exposure of around 12%, which has remained stable over the years [15][67] - E-commerce sales accounted for 20% of total sales, with expectations to reach 30% by the end of the decade [4][98] Company Strategy and Development Direction - The company is focused on innovation and digital growth, with plans to invest more in e-commerce and technology [94] - The acquisition strategy remains a priority, with a specific focus on high-growth, high-margin brands [48][63] - The company aims to recover gross margins to pre-COVID levels of 45.5% through productivity programs and higher-margin acquisitions [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to grow in the U.S. market, projecting a 3% growth outlook [13] - The company is optimistic about its new product pipeline, describing it as the best in 17 years [98] - Management noted that inflation is moderating, which is expected to positively impact gross margins [19][27] Other Important Information - The company announced a 4% dividend increase, aligning with its capital allocation strategy [31] - The cash conversion cycle has improved significantly, dropping from 52 days to the 20s, despite a recent spike due to acquisitions [29] - The company is committed to maintaining a strong balance sheet, with expectations to reduce leverage from 1.8 times to 1.6 times [62] Q&A Session Questions and Answers Question: What caused the weakness in the fourth quarter for ARM & HAMMER laundry? - Management indicated that the weakness was due to the decision to not repeat certain promotions from the previous year, which resulted in a loss of share but was deemed the right decision [100] Question: How is the company supporting the launch of new products? - The company plans to support the launch of Deep Clean and fabric sheets with increased marketing efforts, which are expected to contribute to share growth [101] Question: What is the outlook for the cat litter category? - The cat litter category remains healthy, with ARM & HAMMER contributing to an 11.8% growth last year, driven by increased pet adoptions and price increases [102] Question: How is BATISTE performing in the dry shampoo category? - BATISTE has seen a 16% growth, outperforming the category growth of 15.6%, attributed to new products and effective advertising [104] Question: What steps are being taken to address the share decline in the gummy category? - The company is investing in new product upgrades and advertising to stabilize the business and regain growth in the gummy category [105]