Church & Dwight Analysts Slash Their Forecasts After Q2 Earnings

Core Insights - Church & Dwight Company, Inc. reported better-than-expected second-quarter results with adjusted earnings per share of 94 cents, surpassing the analyst consensus estimate of 85 cents [1] - Quarterly sales reached $1.51 billion, exceeding the expected $1.48 billion [1] - The company reaffirmed its FY25 adjusted earnings per share guidance at $3.44–$3.51, aligning with consensus estimates of approximately $3.48 [1] Financial Expectations - For the third quarter, Church & Dwight anticipates reported and organic sales growth of approximately 1%-2% [2] - The company expects adjusted gross margin contraction of approximately 100 basis points due to inflation, tariff costs, lower margins from exited businesses, and increased marketing investments [2] - Adjusted EPS for the third quarter is projected to be 72 cents per share, reflecting a 9% decrease compared to last year's adjusted third-quarter EPS [2] Market Reaction - Following the earnings announcement, Church & Dwight shares fell 2.5% to trade at $91.70 [3] - Analysts adjusted their price targets for Church & Dwight after the earnings report [3] Analyst Ratings - Barclays analyst Lauren Lieberman maintained an Underweight rating and lowered the price target from $84 to $83 [5] - Evercore ISI Group analyst Javier Escalante maintained an In-Line rating and reduced the price target from $102 to $101 [5] - JP Morgan analyst Andrea Teixeira also maintained an Underweight rating, lowering the price target from $97 to $92 [5]