Core Viewpoint - Church & Dwight Co., Inc. (CHD) reported mixed first-quarter 2025 results, with adjusted earnings per share (EPS) beating estimates but net sales missing expectations, reflecting a challenging operating environment [1][2]. Financial Performance - Adjusted EPS for the quarter was 91 cents, surpassing the Zacks Consensus Estimate of 89 cents and the company's guidance of 90 cents, although it represented a 5.2% decline year over year [1]. - Net sales totaled $1,467.1 million, down 2.4% year over year, missing the Zacks Consensus Estimate of $1,511 million and the company's guidance for a nearly 1% increase [3]. - Organic sales decreased by 1.2%, driven by a 1.4% drop in volumes, partially offset by a 0.2% increase in pricing and mix [4]. Segment Analysis - **Consumer Domestic**: Net sales fell 3% to $1,129.8 million, with organic sales down 3% due to a 3.1% volume drop [6]. - **Consumer International**: Net sales increased by 2.7% to $261.9 million, with organic sales climbing 5.8%, driven by a 5.9% volume growth [7]. - **Specialty Products**: Sales declined 9.3% to $75.4 million, although organic sales grew by 3.2% [8]. Cost and Margin Insights - Gross margin contracted by 70 basis points to 45%, with adjusted gross margin at 45.1%, down 60 basis points year over year due to higher manufacturing costs [5]. - Marketing expenses decreased by $15.4 million year over year to $136.6 million, while adjusted selling, general, and administrative (SG&A) expenses increased by 40 basis points to 15.2% of net sales [5]. Future Outlook - For 2025, CHD projects organic sales growth of around 0-2%, down from a previous estimate of 3-4%, reflecting ongoing macroeconomic challenges [15]. - Adjusted EPS growth is now expected to be 0-2%, a reduction from the earlier guidance of 7-8% [17]. - The company anticipates a decline in organic sales of 2% for the second quarter, with adjusted EPS projected at 85 cents, a 9% decrease from the prior year [18].

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for the quarter ended March 31, 2025 [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the quarter ended March 31, 2025, including income, balance sheet, and cash flow statements with detailed notes [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net sales decreased to **$1,467.1 million** and net income to **$220.1 million** in Q1 2025 compared to Q1 2024 Q1 2025 vs Q1 2024 Income Statement Highlights (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $1,467.1 | $1,503.3 | -2.4% | | **Gross Profit** | $659.6 | $687.0 | -4.0% | | **Income from Operations** | $295.3 | $305.0 | -3.2% | | **Net Income** | $220.1 | $227.7 | -3.3% | | **Diluted EPS** | $0.89 | $0.93 | -4.3% | | **Cash dividends per share** | $0.29 | $0.28 | +3.6% | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased slightly to **$8,955.9 million**, while total liabilities decreased and stockholders' equity rose as of March 31, 2025 Balance Sheet Summary (in millions) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,358.8 | $2,240.6 | | **Total Assets** | $8,955.9 | $8,883.1 | | **Total Current Liabilities** | $1,208.0 | $1,315.9 | | **Long-term Debt** | $2,205.2 | $2,204.6 | | **Total Liabilities** | $4,404.9 | $4,522.3 | | **Total Stockholders' Equity** | $4,551.0 | $4,360.8 | [Condensed Consolidated Statements of Cash Flow](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) Net cash from operating activities decreased to **$185.7 million** in Q1 2025, with overall cash and equivalents increasing to **$1,074.5 million** Cash Flow Summary (in millions) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net Cash Provided By Operating Activities** | $185.7 | $263.0 | | **Net Cash Used In Investing Activities** | $(16.7) | $(46.8) | | **Net Cash Used In Financing Activities** | $(61.0) | $(209.1) | | **Net Change In Cash and Cash Equivalents** | $110.4 | $5.2 | | **Cash and Cash Equivalents at End of Period** | $1,074.5 | $349.7 | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the Graphico acquisition, a significant VMS business impairment, and planned divestitures of underperforming brands - On June 3, 2024, the Company acquired Graphico, Inc., a Japan-based distributor, for **$19.9 million** net of cash acquired, expanding business in the APAC region[45](index=45&type=chunk) - In Q3 2024, the company recorded a total impairment charge of **$357.1 million** related to its VMS business, including a **$281.3 million** impairment of the trade name, due to declining market share and profitability[52](index=52&type=chunk)[55](index=55&type=chunk) - The WATERPIK® business, with a trade name carrying value of **$644.7 million**, is noted as being susceptible to future impairment due to declining customer demand and sales[56](index=56&type=chunk) - On May 1, 2025, the company announced strategic actions to shut down or sell the Flawless, Spinbrush, and Waterpik showerhead businesses, expecting an estimated charge of **$60.0 million to $80.0 million** in Q2 2025, primarily from non-cash impairments[80](index=80&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, highlighting sales decline, margin contraction, and strategic actions to address challenges [Overview and Recent Developments](index=28&type=section&id=Overview%20and%20Recent%20Developments) The company addresses supply chain issues, tariff exposure, and announces plans to exit certain underperforming business lines - The company is experiencing supply chain challenges and economic uncertainty due to U.S. trade policies and tariffs, with a projected 12-month gross tariff exposure of approximately **$190.0 million**[86](index=86&type=chunk) - Management expects to reduce tariff exposure by approximately **80%** through strategic actions, including ceasing the import of Waterpik flossers from China to the U.S[86](index=86&type=chunk) - On May 1, 2025, the company announced it will shut down or sell the Flawless, Spinbrush, and Waterpik showerhead businesses, which collectively generate about **$150.0 million** in annual net sales[87](index=87&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Consolidated net sales decreased **2.4%** due to volume declines, and gross margin contracted by **70 basis points** in Q1 2025 Q1 2025 Consolidated Results vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $1,467.1M | $1,503.3M | -2.4% | | **Gross Margin** | 45.0% | 45.7% | -70 bps | | **Operating Margin** | 20.2% | 20.3% | -10 bps | | **Diluted EPS** | $0.89 | $0.93 | -4.3% | - The **2.4%** net sales decrease was driven by a **1.4%** decline in product volumes sold, a **0.7%** negative impact from foreign exchange, and a **0.5%** impact from exiting product lines[91](index=91&type=chunk) - Gross margin decreased by **70 bps** due to higher manufacturing costs (**+230 bps**), partially offset by productivity programs (**-160 bps**) and favorable price/mix/volume (**-10 bps**)[93](index=93&type=chunk) [Segment Results](index=32&type=section&id=Segment%20Results) Consumer Domestic sales declined, Consumer International grew, and Specialty Products sales decreased due to business exits in Q1 2025 Net Sales by Segment (in millions) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Consumer Domestic** | $1,129.8 | $1,165.2 | -3.0% | | **Consumer International** | $261.9 | $255.0 | +2.7% | | **SPD** | $75.4 | $83.1 | -9.3% | - Consumer Domestic sales decline was driven by VITAFUSION®/L'IL CRITTERS®, OXICLEAN®, and ARM & HAMMER® cat litter, partially offset by growth in THERABREATH® and ZICAM®[100](index=100&type=chunk) - Consumer International sales growth was driven by a **5.9%** increase in volume, partially offset by a **4.4%** negative impact from foreign exchange[102](index=102&type=chunk) - SPD net sales decrease was primarily due to a **13.6%** impact from exiting the MEGALAC business[104](index=104&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with significant cash and credit facility availability, and increased its quarterly dividend - As of March 31, 2025, the company had **$1,074.5 million** in cash and cash equivalents and approximately **$1,494.0 million** available under its revolving credit facility[110](index=110&type=chunk) - The Board declared a **4%** increase in the quarterly dividend to **$0.295 per share**, effective January 29, 2025[113](index=113&type=chunk) - There is **$658.9 million** of share repurchase availability under the 2021 Share Repurchase Program as of March 31, 2025[113](index=113&type=chunk) [Cash Flow Analysis](index=36&type=section&id=Cash%20Flow%20Analysis) Operating cash flow decreased in Q1 2025 due to working capital changes, while the cash conversion cycle remained stable - Net cash provided by operating activities decreased to **$185.7 million** in Q1 2025 from **$263.0 million** in Q1 2024, due to increased working capital and lower cash earnings[115](index=115&type=chunk) Cash Conversion Cycle (Days) | Metric | March 31, 2025 | March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **DSO** | 37 | 32 | +5 | | **DIO** | 70 | 67 | +3 | | **DPO** | 79 | 71 | +8 | | **Cash Conversion Cycle** | 28 | 28 | 0 | [Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section refers to the company's Annual Report on Form 10-K for detailed disclosures on market risk - For disclosures about market risk, the report refers to Item 7A in the company's Form 10-K[119](index=119&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the Company's disclosure controls and procedures are effective as of the end of the quarter[120](index=120&type=chunk) - No changes occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[121](index=121&type=chunk) [PART II - OTHER INFORMATION](index=41&type=section&id=PART%20II) This section covers legal proceedings, risk factors, equity sales, and other general information for the reporting period [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal actions in the ordinary course of business, with uncertain outcomes that could be material - The Company is subject to various legal proceedings in the ordinary course of business, the outcomes of which are uncertain and could have a material adverse effect[126](index=126&type=chunk) [Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the detailed discussion of risk factors in the company's Annual Report on Form 10-K - The report refers to Item 1A, "Risk Factors" in the Form 10-K for a discussion of factors that could materially affect the company[127](index=127&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares in Q1 2025, with **$658.9 million** remaining under the 2021 Share Repurchase Program - The company did not repurchase any shares of Common Stock under its share repurchase programs during Q1 2025[129](index=129&type=chunk) - As of March 31, 2025, there is **$658.9 million** of share repurchase availability under the 2021 Share Repurchase Program[130](index=130&type=chunk) [Other Information](index=41&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter[132](index=132&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section provides an index of exhibits filed with the Form 10-Q, including corporate governance documents and certifications - The report includes an index of exhibits, such as certifications from the CEO and CFO (Exhibits 31.1, 31.2, 32.1, 32.2) and Inline XBRL documents[135](index=135&type=chunk)

Core Insights - Church & Dwight reported revenue of $1.47 billion for the quarter ended March 2025, a decrease of 2.4% year-over-year, and EPS of $0.91, down from $0.96 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $1.51 billion by 2.88%, while the EPS exceeded the consensus estimate of $0.89 by 2.25% [1] Financial Performance Metrics - Total Consumer Net Sales were $1.39 billion, below the average estimate of $1.43 billion, reflecting a year-over-year decline of 2% [4] - Consumer Domestic Net Sales amounted to $1.13 billion, compared to the estimated $1.17 billion, marking a 3% decrease year-over-year [4] - Consumer International Net Sales were reported at $261.90 million, slightly above the average estimate of $260.24 million, showing a year-over-year increase of 2.7% [4] - Specialty Products Division Net Sales were $75.40 million, below the average estimate of $80.55 million, representing a significant year-over-year decline of 9.3% [4] - Consumer Domestic Household Products Net Sales were $614.90 million, compared to the estimated $642.78 million, indicating a 3.8% decrease year-over-year [4] - Consumer Domestic Personal Care Products Net Sales were $514.90 million, below the average estimate of $528.28 million, reflecting a year-over-year decline of 2.2% [4] Stock Performance - Church & Dwight's shares have returned -8.3% over the past month, contrasting with the Zacks S&P 500 composite's -0.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - Adjusted EPS for Q1 was $0.91, down 5.2% from the prior year, slightly above the outlook of $0.90 [24][30] - Reported revenue decreased by 2.4%, and organic sales declined by 1.2% due to lower volume [24][30] - Adjusted gross margin was 45.1%, a decrease of 60 basis points year over year, impacted by commodity inflation and lower volume [25][30] Business Line Data and Key Metrics Changes - U.S. organic sales decreased by 3%, driven entirely by negative volume from retail destocking [9][30] - International business delivered sales growth of 2.7%, with organic sales increasing by 5.8% [18] - SPD organic sales increased by 3.2% due to higher price and product mix [19] Market Data and Key Metrics Changes - U.S. consumer spending continues to weaken, with category growth averaging around 1.5% in Q1, down from 2.5% in the second half of 2024 [10][20] - Retailer destocking negatively impacted organic sales by approximately 300 basis points [5][30] - The Gummy Vitamin category grew by 4.8%, but the company's consumption was down 19% [13] Company Strategy and Development Direction - The company is pursuing strategic alternatives for the FLAWLESS, Spin Brush, and WATERPIK showerhead businesses, which represent about 2% of total net sales [7] - The company expects to reduce tariff exposure by approximately 80% through portfolio decisions and supply chain actions [7][8] - Continued focus on innovation and marketing investment is expected to drive growth in core categories [17][20] Management's Comments on Operating Environment and Future Outlook - The company expects full-year organic growth outlook to be 0% to 2%, revised down from 3% to 4% due to weaker U.S. consumer conditions [29][30] - Management noted that despite a slowdown in category consumption, the brands are performing well, gaining both dollar and volume share [20][30] - The company does not foresee a catalyst for improvement in U.S. consumer spending in the near term [20] Other Important Information - Cash from operating activities for Q1 was $185.7 million, a decrease of $77.3 million compared to the previous year [28] - Capital expenditures for Q1 were $16.5 million, a decrease of $29.8 million from the prior year [28] - The company expects to take a charge in Q2 related to the strategic decisions regarding the divested businesses [7][31] Q&A Session Summary Question: Updated expectations for organic sales growth by segment - Management confirmed that international organic sales were about 6% in Q1, while SPD was about 3% [34] Question: Promotional backdrop for the quarter - Promotional activity in laundry was stable at 34%, with litter promotions around 17.8% [36][38] Question: Expectations for category growth and market share - Management indicated that categories are expected to grow around 1% to 1.5%, with the company aiming to grow slightly faster [46] Question: Tariff impact on earnings - The gross impact of tariffs is projected at $190 million, expected to reduce to around $40 million after strategic actions [52][54] Question: Vitamin business performance and expectations - Management is focused on innovation and marketing to improve the vitamin business, with results expected to be visible by July [58][60] Question: Confidence in retail inventory levels - Management expressed that the expectation for Q2 is similar to Q1, with no significant bounce back anticipated [98][128]

Financial Data and Key Metrics Changes - Organic sales decreased by 1.2%, falling short of the expected range of 0% to 2% growth, primarily due to retailer destocking which accounted for approximately 300 basis points of the decline [6][24] - Adjusted EPS was $0.91, slightly above the outlook of $0.90, but down 5.2% from the prior year [24][30] - Reported revenue declined by 2.4% [24] Business Line Data and Key Metrics Changes - In the U.S. business, organic sales declined by 3%, driven entirely by negative volume from retail destocking [10] - The Gummy Vitamin business negatively impacted organic growth, with consumption down 19% despite the category growing by 4.8% [14] - ARM and HAMMER liquid laundry detergent consumption grew by 3.4% against zero category growth, while unit dose consumption grew by 26.9% [12][13] - TheraBreath consumption grew by 26%, making it the number two mouthwash brand with a 20.3% share [17] Market Data and Key Metrics Changes - International business delivered sales growth of 2.7%, with organic sales increasing by 5.8% largely due to higher volume [19] - SPD organic sales increased by 3.2% due to a combination of higher price and product mix along with higher volume [19] Company Strategy and Development Direction - The company is pursuing strategic alternatives for the FLAWLESS, Spin Brush, and WATERPIK showerhead businesses, which generate $150 million in net sales, to sharpen focus on core brands and mitigate tariff exposure [8][20] - The full-year organic growth outlook has been revised to 0% to 2%, reflecting a weaker U.S. consumer and no expected recovery from Q1 retailer destocking [20][30] - The company is committed to maintaining marketing investments at 11% of net sales to drive brand share momentum [26][88] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer spending continues to weaken, with category growth declining from an average of 2.5% in the second half of 2024 to around 1.5% in Q1 2025 [10][11] - The company expects no bounce back from Q1 retailer destocking and anticipates continued challenges in the U.S. consumer environment [20][21] - Despite the slowdown, management expressed confidence in the strength of their brands and their ability to navigate the current environment [21][22] Other Important Information - The company expects to take a charge in Q2 related to the strategic decisions regarding the divested businesses, estimated at $140 million, with two-thirds expected to be non-cash [32] - Cash from operating activities was $185.7 million, a decrease of $77.3 million compared to the previous year [28] Q&A Session Summary Question: Updated expectations for organic sales growth by segment - Management confirmed that international organic sales were about 6% in Q1, while SPD was about 3%, with expectations for similar performance in Q2 [34][35] Question: Promotional backdrop for the quarter - Management indicated that promotional activity in laundry was stable, with 34% sold on deal, and litter promotions around 17.8% [36][38] Question: Category performance and market share growth - Management noted that categories are expected to grow around 1% to 1.5%, with trade down not yet significantly impacting performance [46] Question: Revenue call down versus tariffs impact - Management clarified that the gross impact of tariffs is projected at $190 million, which is expected to be mitigated through strategic actions [50][54] Question: Vitamin business performance and expectations - Management acknowledged that the vitamin business is not meeting expectations and emphasized the focus on innovation and marketing to drive growth [58][60] Question: Retailer destocking and inventory levels - Management expressed confidence that the current retail destocking is a result of consumer pullback and macroeconomic pressures, leading to a cautious outlook on restocking [116][118]

Company Performance - Church & Dwight (CHD) reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, but down from $0.96 per share a year ago, representing an earnings surprise of 2.25% [1] - The company posted revenues of $1.47 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.88%, compared to year-ago revenues of $1.5 billion [2] - Over the last four quarters, Church & Dwight has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Outlook - Church & Dwight shares have declined approximately 5.1% since the beginning of the year, slightly outperforming the S&P 500's decline of 5.3% [3] - The current consensus EPS estimate for the coming quarter is $0.94 on revenues of $1.56 billion, and for the current fiscal year, it is $3.68 on revenues of $6.28 billion [7] Industry Context - The Consumer Products - Staples industry, to which Church & Dwight belongs, is currently ranked in the bottom 36% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Church & Dwight's stock performance [5]

CHURCH & DWIGHT CO., INC. News Release Contact: Lee McChesney Chief Financial Officer 609-806-1200 CHURCH & DWIGHT REPORTS FIRST QUARTER 2025 RESULTS Q1 EPS EXCEEDS OUTLOOK UPDATES FULL YEAR OUTLOOK | 2025 First Quarter Results | 2025 Full Year Outlook | | --- | --- | | • Net Sales -2.4%: Domestic -3.0%, Int'l +2.7%, SPD -9.3% | 2 • Organic Sales 0% to 2% | | • Organic sales -1.2%: Domestic -3.0%, Int'l +5.8%, SPD +3.2%¹ | 2 • Adjusted Gross Margin Contraction of 60 bps | | • Reported EPS $0.89, Adjusted EP ...

Group 1: Earnings Expectations - Church & Dwight (CHD) is expected to report quarterly earnings of $0.89 per share, reflecting a decline of 7.3% year-over-year [1] - Analysts forecast revenues of $1.51 billion, indicating a slight increase of 0.5% compared to the previous year [1] - The consensus EPS estimate has been revised 1.5% lower over the last 30 days, showing a reevaluation by analysts [1][2] Group 2: Sales Projections - Analysts predict 'Net sales- Total Consumer Net Sales' to reach $1.43 billion, representing a year-over-year change of +0.8% [4] - The estimate for 'Net sales- Consumer- Consumer Domestic' is $1.17 billion, suggesting a change of +0.5% year-over-year [4] - 'Net sales- Consumer- Consumer International' is projected at $260.24 million, indicating a +2.1% change year-over-year [4] Group 3: Specialty Products and Household Sales - The average prediction for 'Net sales- Specialty Products Division' is $80.55 million, reflecting a decline of -3.1% year-over-year [5] - 'Net sales- Consumer- Consumer Domestic - Household Products' is expected to reach $642.78 million, indicating a +0.6% change from the prior-year quarter [5] - 'Net sales- Consumer- Consumer Domestic - Personal Care Products' is projected at $528.28 million, suggesting a +0.4% change from the year-ago quarter [6] Group 4: Income Before Income Taxes - 'Income before Income Taxes- Specialty Products Division' is estimated at $10.66 million, slightly down from $10.80 million year-over-year [6] - 'Income before Income Taxes- Consumer International' is projected at $36.28 million, up from $33 million in the previous year [7] - The estimate for 'Income before Income Taxes- Consumer Domestic' is $248.41 million, compared to $239.20 million from the year-ago period [7] Group 5: Stock Performance - Over the past month, shares of Church & Dwight have returned -9.6%, contrasting with the Zacks S&P 500 composite's -0.2% change [7] - Currently, CHD holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the overall market in the near future [7]

Church & Dwight Co., Inc. (CHD) is likely to register top-line growth when it reports first-quarter 2025 earnings on May 1. The Zacks Consensus Estimate for revenues is pegged at $1.51 billion, suggesting an increase of 0.5% from the prior-year quarter.The consensus mark for first-quarter earnings has remained unchanged in the past 30 days at 89 cents per share, indicating a decline of 7.3% from the figure reported in the year-ago quarter. CHD has a trailing four-quarter earnings surprise of 9.6%, on averag ...

Core Viewpoint - Church & Dwight Co., Inc. (CHD) is currently overvalued with a forward 12-month price-to-earnings multiple of 28.23x, compared to the industry's average of 20x [1] Financial Performance - CHD's stock has increased by 1.6% over the past three months, while the industry has grown by 5% and the S&P 500 has declined by 3.7% [4] - Marketing expenses as a percentage of sales increased by 50 basis points in 2024, with expectations to exceed 11% of sales in 2025, potentially impacting near-term profitability [13] Business Strategy - Strong brand equity allows CHD to pass on cost increases to consumers with minimal demand impact, supporting profitability [6] - E-commerce is a significant growth driver, with online sales accounting for 21.4% of total revenues in Q4 2024, positioning CHD favorably in the digital space [7] - The company has a history of successful acquisitions, focusing on No. 1 or No. 2 brands with high margins, which reinforces its growth trajectory [8] - Over 50% of CHD's innovation pipeline is now focused on emerging categories, diversifying beyond traditional product lines [9] Challenges - CHD faces challenges from shifting consumer spending patterns, with management indicating that price increases are not currently feasible due to consumer exhaustion [12] - Rising marketing expenses and the inability to implement further price increases could pressure margins in the near term [14]