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We expect leading consumer products company, Church & Dwight Co. Inc. (CHD - Snapshot Report) to beat expectations when it reports first-quarter fiscal 2013 results on May 2, 2013.

Why a Likely Positive Surprise?

Our proven model shows that Church & Dwight is likely to beat earnings because it has the right combination of two key components.       

Positive Zacks ESP: Church & Dwight currently has an Earnings ESP (Read: Zacks Earnings ESP: A Better Method) of +1.39%. This is because the Most Accurate Estimate stands at 73 cents, while the Zacks Consensus Estimate is pegged at 72 cents.

Zacks Rank #3 (Hold): Note that stocks with Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings estimates. The sell-rated stocks (Zacks Rank #4 and #5) should never be considered going into an earnings announcement.

The combination of Church & Dwight's Zacks Rank #3 (Hold) and +1.39% ESP makes us confident regarding a positive earnings beat on May 2.

What is Driving the Better-than-Expected Earnings?

We remain optimistic on the company’s ability to deliver sales and earnings per share growth, given its continued emphasis on innovation and marketing investments, cost containment efforts along with its steady cash flow generation.

The company expects innovative product launches to continue boosting organic sales in 2013, and anticipates organic growth to be in the range of 3%–4%. Church & Dwight forecasts commodity prices to remain stable and expects gross margin to rise by 25 – 50 basis points.

The positive trend is seen in the trailing four-quarter average surprise of 7.3%.

Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Hertz Global Holdings, Inc. (HTZ - Snapshot Report), Earnings ESP of +5.56% and a Zacks Rank #1 (Strong Buy)

J&J Snack Foods Corp. (JJSF - Snapshot Report), Earnings ESP of +9.84% and a Zacks Rank #2 (Buy) Inc. (AMZN - Analyst Report), Earnings ESP of +14.29% and a Zacks Rank #3 (Hold).

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