Church & Dwight to Report Q3 Earnings: Here's What You Should Know

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].