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Factors Shaping the Fate of Church & Dwight (CHD) Q2 Earnings
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Church & Dwight Co., Inc. (CHD - Free Report) is likely to register an increase in the top line when it reports second-quarter 2020 results on Jul 31, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $1,153 million, indicating an improvement of 6.8% from the prior-year reported figure. The company is likely to have gained from coronavirus-induced demand spike for household and personal care products.
Additionally, the bottom line of this Ewing, NJ-based company is also expected to improve year over year. Although the Zacks Consensus Estimate for earnings for the quarter under review has fallen by a penny over the past 30 days to 63 cents, it still suggests growth of 10.5% from the prior-year quarter.
Notably, the company has a trailing four-quarter earnings surprise of 6.8%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 9.2%.
Factors to Note
Church & Dwight boasts a robust brand portfolio, courtesy of its focus on innovation and buyouts. Additionally, the company’s regular innovation has been helping it improve brand positions and market share in the consumer categories. We note that the company has been gaining from rising consumer demand for its home care and cleaning, personal wellness, and at-home grooming products amid the coronavirus-led crisis. Cumulatively, these are likely to get reflected in the to-be-reported quarter’s top line.
Notably, both household and personal care businesses have been performing well. Further, the company is working with retail associates and suppliers to ensure a smooth supply chain and support the increased demand. Management had earlier said that it has undertaken steps to increase short-term production capacity for its cleaning and healthcare products.
On its last earnings call, Church & Dwight informed that it is seeing demand for brands like OxiClean additives, VitaFusion, ARM & HAMMER unit dose laundry, ARM & HAMMER baking soda and Orajel oral analgesics. Further, demand for brands like FLAWLESS has been benefiting from elevated at-home grooming sessions. In April, shipments were tracking up 8% driven by laundry, litter and vitamins for combined U.S. categories.
In spite of the aforementioned tailwinds, we cannot ignore any deleverage in manufacturing costs, unfavorable currency fluctuations and COVID-19 related expenses.
Church Dwight Co., Inc. Price, Consensus and EPS Surprise
Our proven model predicts an earnings beat for Church & Dwight this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Church & Dwight has a Zacks Rank #3 and an Earnings ESP of +0.95%.
3 More Stocks With a Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
Kroger (KR - Free Report) has an Earnings ESP of +4.52% and a Zacks Rank #1.
Colgate-Palmolive Company (CL - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #3.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>
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Factors Shaping the Fate of Church & Dwight (CHD) Q2 Earnings
Church & Dwight Co., Inc. (CHD - Free Report) is likely to register an increase in the top line when it reports second-quarter 2020 results on Jul 31, before the market opens. The Zacks Consensus Estimate for revenues is pegged at $1,153 million, indicating an improvement of 6.8% from the prior-year reported figure. The company is likely to have gained from coronavirus-induced demand spike for household and personal care products.
Additionally, the bottom line of this Ewing, NJ-based company is also expected to improve year over year. Although the Zacks Consensus Estimate for earnings for the quarter under review has fallen by a penny over the past 30 days to 63 cents, it still suggests growth of 10.5% from the prior-year quarter.
Notably, the company has a trailing four-quarter earnings surprise of 6.8%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by 9.2%.
Factors to Note
Church & Dwight boasts a robust brand portfolio, courtesy of its focus on innovation and buyouts. Additionally, the company’s regular innovation has been helping it improve brand positions and market share in the consumer categories. We note that the company has been gaining from rising consumer demand for its home care and cleaning, personal wellness, and at-home grooming products amid the coronavirus-led crisis. Cumulatively, these are likely to get reflected in the to-be-reported quarter’s top line.
Notably, both household and personal care businesses have been performing well. Further, the company is working with retail associates and suppliers to ensure a smooth supply chain and support the increased demand. Management had earlier said that it has undertaken steps to increase short-term production capacity for its cleaning and healthcare products.
On its last earnings call, Church & Dwight informed that it is seeing demand for brands like OxiClean additives, VitaFusion, ARM & HAMMER unit dose laundry, ARM & HAMMER baking soda and Orajel oral analgesics. Further, demand for brands like FLAWLESS has been benefiting from elevated at-home grooming sessions. In April, shipments were tracking up 8% driven by laundry, litter and vitamins for combined U.S. categories.
In spite of the aforementioned tailwinds, we cannot ignore any deleverage in manufacturing costs, unfavorable currency fluctuations and COVID-19 related expenses.
Church Dwight Co., Inc. Price, Consensus and EPS Surprise
Church Dwight Co., Inc. price-consensus-eps-surprise-chart | Church Dwight Co., Inc. Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Church & Dwight this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Church & Dwight has a Zacks Rank #3 and an Earnings ESP of +0.95%.
3 More Stocks With a Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
SpartanNash Company (SPTN - Free Report) has an Earnings ESP of +4.84% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Kroger (KR - Free Report) has an Earnings ESP of +4.52% and a Zacks Rank #1.
Colgate-Palmolive Company (CL - Free Report) has an Earnings ESP of +0.81% and a Zacks Rank #3.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>