The market expects Church & Dwight (CHD) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on January 31, 2025, might help the stock move higher if these key numbe ...

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]

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well. What are the Zacks Style Scores? The ...

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]

Core Insights - Church & Dwight Co., Inc. (CHD) reported strong third-quarter 2024 results, with both earnings and net sales exceeding expectations, driven by robust consumer demand and effective execution [1][2][3] Financial Performance - Adjusted earnings per share (EPS) reached 79 cents, surpassing the Zacks Consensus Estimate of 68 cents, marking a 6.8% year-over-year increase [2] - Net sales totaled $1,510.6 million, a 3.8% increase year over year, exceeding the Zacks Consensus Estimate of $1,493.8 million [3] - Organic sales grew by 4.3%, supported by a volume increase of 3.1% and a favorable product mix and pricing contributing 1.2% [3] Segment Performance - Consumer Domestic segment net sales rose 3.3% to $1,170.8 million, driven by personal care sales growth, with organic sales also increasing by 3.3% [6] - Consumer International segment net sales increased 9.5% to $267.7 million, with organic sales jumping 8.1% [7] - Specialty Products segment sales declined 8% to $72.1 million, although organic sales grew by 7.5% [8] Cost and Margin Analysis - Gross margin expanded by 80 basis points to 45.2%, with adjusted gross margin at 45%, up 60 basis points [4] - Marketing expenses increased by $18 million year over year to $185.8 million, representing 12.3% of net sales [4] - Adjusted SG&A expenses as a percentage of net sales rose 20 basis points to 15% due to investments in various operational areas [5] Financial Health and Future Outlook - The company ended the quarter with cash and cash equivalents of $752.1 million and long-term debt of $2,208.2 million [9] - For 2024, CHD anticipates reported sales growth of nearly 3.5% and organic sales growth of around 4% [11] - Management raised its full-year adjusted gross margin expansion guidance to approximately 110 basis points compared to 2023 [12] - The company expects a reported EPS decline of nearly 23% due to an asset impairment charge, while adjusted EPS growth is projected to be around 8% [13] - For Q4 2024, reported sales growth is expected to be between 1.5-2.5%, with adjusted EPS projected at 76 cents, a 17% year-over-year increase [14]

Financial Data and Key Metrics - Reported sales growth was 3.8%, beating the outlook of 2.5%, driven by strong performance in domestic, international, and specialty products businesses [4] - Organic sales grew 4.3%, exceeding the 3% outlook, with volume contributing 3.1% of the growth [5] - Adjusted EPS was $0.79, $0.12 higher than the $0.67 outlook, driven by higher-than-expected sales growth and gross margin expansion [6] - Adjusted gross margin expanded by 60 basis points, with marketing spending increasing and market share gains in most categories [5][6] - Online sales accounted for approximately 21% of global sales, continuing to perform well [6] Business Line Performance - **US Business**: Organic sales grew 3.3%, with volume growth of 2.6%, marking the fifth consecutive quarter of volume growth [7] - **Laundry Detergent**: ARM & HAMMER Liquid Laundry Detergent consumption grew 2%, outpacing a flat category, with market share reaching 14.7% [9] - **Litter**: ARM & HAMMER litter consumption declined 1.5%, but the new lightweight clumping litter outperformed expectations [12][13] - **Personal Care**: Gummy vitamins business declined 10%, leading to a $357 million write-down of assets [14][15] - **BATISTE**: Dry shampoo consumption grew 6%, with market share reaching 46% [16] - **THERABREATH**: Alcohol-free mouthwash grew 11%, with a 35% market share in the non-alcohol category [17] - **HERO**: Acne care brand grew patch market share by 1.7 basis points to 57% [19] - **International Business**: Organic growth of 8.1%, driven by strong performance across subsidiaries and global markets [22] - **Specialty Products**: Organic sales increased 7.5%, with confidence in achieving 5% growth for the year [23] Market Performance - US consumer consumption decelerated in Q3, with category growth slowing from 4.5% in the first five months to 2.5% in June, July, and August [24] - September saw a rebound to 3% growth, while October saw a 5% increase, influenced by external factors like hurricanes and port strikes [25] - Promotional levels in laundry detergent remained stable, while litter promotions increased significantly, driven by a major competitor [20][21] Company Strategy and Industry Competition - The company is focused on innovation, with new product launches like ARM & HAMMER Deep Clean and Power Sheets driving growth in laundry detergent [10][11] - In litter, the lightweight clumping litter is gaining market share, with Hardball becoming the number two brand in the lightweight segment [13] - The company is investing in marketing and innovation to stabilize underperforming segments like gummy vitamins, with new packaging and formulas expected in 2025 [15] - International expansion continues to be a priority, with strong growth in all subsidiaries and global markets [22] Management Commentary on Operating Environment and Future Outlook - Management remains cautious about the US consumer and category growth rates in Q4, despite some improvement in September and October [25][34] - The company expects full-year organic revenue growth of approximately 4% and reported sales growth of 3.5%, with adjusted EPS growth of 8% [34] - Gross margin expansion is expected to be around 110 basis points, with marketing spending as a percentage of sales above 11% [35] Other Important Information - The company recorded a $357 million write-down of the gummy vitamins business due to slower-than-expected improvement [15] - Cash flow from operations for the first nine months was $864 million, with full-year expectations of $1.1 billion [32] - Capital expenditures for 2024 are expected to be $180 million, with a return to historical levels of 2% of sales in 2025 [33] Q&A Session Summary Question: Outlook for Q4 and inventory dynamics [37] - **Answer**: No significant inventory timing dynamics impacting Q4, with cautious outlook on category growth rates due to economic uncertainty [38][39] Question: US business top-line growth objective [42] - **Answer**: The US business is expected to grow at 3%, with international at 8% and specialty products at 5%, contributing to the overall 4% growth target [43][44] Question: Path to stabilization and growth in the vitamin business [47] - **Answer**: Stabilization efforts include new packaging, upgraded formulas, and innovation expected in 2025, with some green shoots in L'IL CRITTERS [48][49][50] Question: Marketing investments and strategy [52] - **Answer**: Marketing spend is expected to increase to 11-11.5% of sales, with a focus on innovation and international expansion [53][54][56] Question: Promotional environment in laundry and litter [81] - **Answer**: Promotional levels in laundry remain stable, while litter promotions have increased, driven by a major competitor [82][83] Question: Gross margin outlook and commodity costs [76] - **Answer**: Gross margin expansion is expected to be around 110 basis points, with higher manufacturing costs partially offset by productivity gains [77][78] Question: Innovation contribution and future plans [108] - **Answer**: Innovation contributed approximately 2% incremental net sales in 2024, with strong pipelines for 2026 and beyond [109][110] Question: Vitamin business and impairment charge [114] - **Answer**: The impairment charge reflects reduced growth and profit expectations, with stabilization efforts focused on innovation rather than increased spending [115][116][117] Question: Premium price innovation and trade-up opportunities [122] - **Answer**: Premium innovations like Deep Clean and Power Sheets are performing well, with consumer interest in sustainable products driving growth [123][124][125] Question: International business and Japan acquisition [128] - **Answer**: International business is performing well, with opportunistic marketing spend in Q4, while the Japan acquisition is still in early stages [129][131] Question: R&D and SG&A spend for 2025 [134] - **Answer**: R&D and SG&A spend is expected to remain around 2% of sales, with an SAP project implementation in 2025 [135]

For the quarter ended September 2024, Church & Dwight (CHD) reported revenue of $1.51 billion, up 3.8% over the same period last year. EPS came in at $0.79, compared to $0.74 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.49 billion, representing a surprise of +1.12%. The company delivered an EPS surprise of +16.18%, with the consensus EPS estimate being $0.68.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Church & Dwight (CHD) came out with quarterly earnings of $0.79 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.18%. A quarter ago, it was expected that this maker of household and personal products would post earnings of $0.84 per share when it actually produced earnings of $0.93, delivering a surprise of 10.71%.Over the ...

CHURCH & DWIGHT CO., INC. News Release Contact: Rick Dierker Chief Financial Officer 609-806-1200 CHURCH & DWIGHT REPORTS Q3 2024 RESULTS Q3 NET SALES, GROSS MARGIN, ADJUSTED EPS AND CASH FLOW EXCEED OUTLOOK AFFIRMS FULL YEAR NET SALES AND ADJUSTED EPS OUTLOOK 2024 Third Quarter Results 2024 Full Year Outlook • Net Sales +3.8%: Domestic +3.3%, Int'l +9.5%, SPD -8.0% • Net Sales +3.5%; Organic Sales +4.0%¹ • Organic Sales¹ +4.3%: Domestic +3.3%, Int'l +8.1%, SPD • Adjusted Gross Margin expansion +110 bps (pr ...