Core Viewpoint - Church & Dwight, Inc. (CHD) is expected to report top-line growth for Q3 fiscal 2024, with revenues projected at $1,494 million, reflecting a 2.6% increase year-over-year, while earnings per share are anticipated to decline by 8.1% to 68 cents [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for Q3 revenues is $1,494 million, indicating a 2.6% increase from the previous year [1]. - The earnings estimate remains unchanged at 68 cents per share, representing an 8.1% decline year-over-year [2]. Historical Performance - CHD has a strong history of earnings surprises, exceeding consensus estimates in the last four quarters with an average surprise of 8.2% [2]. Factors Influencing Q3 Earnings - CHD's diverse product portfolio, including essential household and personal care items, positions the company to capture consumer demand focused on value and quality [4]. - Continued investment in marketing, innovative product launches, and strong brand performance are expected to drive revenue growth [4]. - The company anticipates net sales growth of approximately 2.5% and organic sales growth of around 3% for Q3 [5]. Segment Performance - Organic sales growth is projected at 2.9%, with 2% growth in the Consumer Domestic segment, 6.8% in the Consumer International segment, and 4.2% in the Specialty Products division [5]. - Key brands such as ARM & HAMMER and OXICLEAN are expected to be significant revenue drivers, with the Consumer Domestic segment anticipated to grow by 2% year-over-year [6][7]. International Expansion - CHD is strengthening its international presence, with a robust 9.3% organic growth reported in the international segment in Q2, particularly in Canada, Mexico, and Germany [8]. - Revenue from the Consumer International segment is expected to increase by 8.3% [8]. Challenges - The company faces challenges due to a slowing consumer spending environment, which has affected consumption growth [9]. - The gummy vitamins segment has underperformed, experiencing consistent declines despite efforts to stabilize it through new packaging and formulas [10]. Marketing and Expenses - CHD has seen increasing marketing expenses, which may impact profit margins if sales do not sufficiently offset these costs [11]. - Marketing expenses as a percentage of sales are projected to increase by 160 basis points to 13.1% in Q3 [11].

Core Insights - Church & Dwight (CHD) is expected to report quarterly earnings of $0.68 per share, reflecting an 8.1% decline year-over-year, while revenues are forecasted to reach $1.49 billion, indicating a 2.6% increase compared to the previous year [1] Earnings Estimates - There have been no revisions in the consensus EPS estimate for the quarter over the last 30 days, suggesting analysts have maintained their initial forecasts [1][2] - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock [2] Revenue Projections - Analysts project 'Net sales- Total Consumer Net Sales' to be $1.42 billion, representing a 3.1% increase from the prior-year quarter [4] - 'Net sales- Consumer- Consumer Domestic' is expected to reach $1.16 billion, indicating a year-over-year change of 2.1% [4] - 'Net sales- Consumer- Consumer International' is estimated at $262.50 million, suggesting a 7.4% increase year-over-year [5] - 'Net sales- Specialty Products Division' is projected to be $73.81 million, reflecting a decline of 5.9% compared to the previous year [5] Income Before Taxes - 'Income before Income Taxes- Specialty Products Division' is expected to be $8.78 million, up from $6.20 million in the same quarter last year [7] - 'Income before Income Taxes- Consumer International' is projected at $23.33 million, slightly higher than the year-ago figure of $22.70 million [7] - 'Income before Income Taxes- Consumer Domestic' is estimated to reach $197.00 million, down from $203.40 million in the previous year [8] Stock Performance - Shares of Church & Dwight have shown a return of -3.5% over the past month, contrasting with the Zacks S&P 500 composite's +1.7% change [8] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to mirror overall market performance in the near future [8]

Company Overview - Church & Dwight (CHD) is expected to report a year-over-year decline in earnings of 8.1%, with an estimated earnings per share (EPS) of $0.68 for the quarter ended September 2024 [2] - Revenue is projected to be $1.49 billion, reflecting a 2.6% increase from the previous year [2] Earnings Expectations - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [3] - The Most Accurate Estimate for Church & Dwight is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.24%, suggesting a bearish sentiment among analysts [6] Earnings Surprise Prediction - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [5] - Church & Dwight currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [7] Historical Performance - In the last reported quarter, Church & Dwight exceeded expectations by delivering an EPS of $0.93 against an expected $0.84, resulting in a surprise of +10.71% [8] - The company has beaten consensus EPS estimates in each of the last four quarters [8] Industry Comparison - Clorox (CLX), a competitor in the same industry, is expected to report an EPS of $1.36 for the same quarter, indicating a significant year-over-year increase of 177.6% [10] - Clorox's revenue is anticipated to reach $1.63 billion, up 17.6% from the previous year, and it has a positive Earnings ESP of 2.60% along with a Zacks Rank of 2 (Buy) [10]

Church & Dwight Co., Inc. (CHD) appears in a troubled spot. The company is facing challenges related to volatile consumer spending in the current environment. Increasing marketing expenditure and weakness in the gummy vitamins business are also a concern for the company's overall performance. These downsides are reflected in Church & Dwight's guidance for the third quarter and 2024. Reflecting the negative sentiment, the Zacks Consensus Estimate for the current quarter and full year has seen downward revisi ...

. ● . SEC Charges Independent Director and Ex-CEO of Church & Dwight With Concealing Close Friendship with Company Executive September 30, 2024 5:47 PM EDT | Source: Newsfile SEC Press Digest Washington, D.C.--(Newsfile Corp. - September 30, 2024) - The Securities and Exchange Commission today announced settled charges against James R. Craigie, a former CEO, Chairman, and board member of Church & Dwight Co. Inc., for violating proxy disclosure rules by standing for election as an independent director withou ...

Core Insights - The Zacks Soap and Cleaning Materials industry is thriving due to strong consumer demand, cost-saving measures, and effective execution strategies despite macroeconomic challenges [1][2][4] Industry Overview - The industry comprises companies manufacturing fast-moving consumer goods, including personal care, household, and specialty products [3] - Key segments include skin and hair care, home care products, and laundry detergents, with distribution through various retail channels [3] Major Trends - Product innovation and strategic efforts are crucial for growth, with companies focusing on eco-friendly products and expanding digital capabilities [4] - Strong demand trends and strategic pricing actions have positively impacted sales, with companies adopting bold pricing initiatives to combat rising costs [5][6] Cost Challenges - The industry faces elevated manufacturing and logistics costs, impacting profitability, with companies implementing cost-control measures to improve margins [2][6] - Increased spending on advertising and sales promotions is expected to affect near-term margins [2] Performance Metrics - The industry has outperformed the broader Zacks Consumer Staples sector, rising 21.6% over the past year compared to the sector's 9.4% and the S&P 500's 31.1% [10] - The current forward 12-month price-to-earnings (P/E) ratio for the industry is 23.72X, higher than the S&P 500's 21.8X and the sector's 18.2X [11] Company Highlights - **Unilever**: Focused on productivity with a target of €800 million in cost savings and a projected 2024 sales growth of 4.2% [12] - **Colgate-Palmolive**: Expanding its Naturals range and targeting a 2024 sales growth of 3.9% [16] - **Henkel**: Benefiting from price increases and cost management, with a projected 2024 sales growth of 1.7% [18] - **Procter & Gamble**: Experiencing strong demand across all segments, with a projected 2024 sales growth of 2.4% [20] - **Church & Dwight**: Focused on product innovation and capital investments, targeting a 2024 sales growth of 3.6% [22]

Church & Dwight Co., Inc. (CHD) is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 28.42, higher than the industry average of 23.72 and the S&P 500's 21.81. This inflated valuation suggests that the market is pricing in high growth expectations, but it also raises questions about whether the company can deliver results that justify such a premium. CHD's Value Score of D adds to these concerns. Image Source: Zacks Investment Research Shares of Church & Dwight have dipped 3.8% in the ...

Church & Dwight Co., Inc. (CHD) continues to solidify its market position through a strong brand portfolio and adept pricing strategies. Its focus on expanding online sales has aligned with shifting consumer behaviors. However, the company faces challenges, including rising marketing expenses and a slowdown in consumer spending, which affected second-quarter 2024 results. Currency fluctuations pose a risk to the company's performance. Shares of the company have risen 7.9% in the past year compared with the ...

Investors in Church & Dwight Co., Inc. (CHD) need to pay close attention to the stock based on moves in the options market lately. That is because the Nov 15, 2024 $45.00 Put had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It c ...

Core Viewpoint - Church & Dwight Co. (CHD) is expected to have a rangebound share price in the near term until positive indicators emerge to support its ability to meet FY24 organic sales guidance [2][8] Company Overview - CHD develops, manufactures, and markets a variety of household, personal care, and specialty products, generating 90% of its revenue from the US and 10% from international markets [3] Earnings Results Update - In 2Q24, CHD reported total revenue of $1.51 billion, with organic sales growth of 4.7%, driven by a 9.3% increase in consumer international sales, while consumer domestic sales grew only 3.8% [4] - Gross margin was 45.4% and EBIT margin was 20.9%, leading to an operating EPS of $0.93 [4] Uncertainty in Meeting FY24 Guidance - CHD revised its FY24 organic sales outlook down to 4%, indicating a significant deceleration in growth from 1H24 [5] - The company experienced poor performance in June and July, with main categories growing only ~2% compared to 4.5% in the first five months of the year [5] - Mixed macroeconomic signals complicate the outlook for consumer spending, affecting investor sentiment towards CHD [5] Volume Growth Drivers - CHD's ability to drive volume growth hinges on macroeconomic recovery and successful innovation [6] - Recent product innovations, such as the Arm & Hammer liquid detergent and TheraBreath mouthwash, have shown promising market share gains [6] Valuation - CHD's stock trades at approximately 28x forward PE, which is considered expensive compared to peers like Procter & Gamble and Colgate-Palmolive, which trade at around 25x forward PE [7] - If CHD fails to meet its FY24 guidance, there is potential for the stock to decline to a 25x valuation [7] Conclusion - The path to achieving FY24 guidance for CHD remains uncertain due to mixed macroeconomic conditions, decelerating volume growth, and high valuation relative to peers [8]