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Things to Consider Before Church & Dwight's (CHD) Q4 Earnings

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Church & Dwight Co., Inc. (CHD - Free Report) is likely to register top-and bottom-line growth when it reports fourth-quarter 2021 earnings on Jan 28, before market open. The Zacks Consensus Estimate for revenues is pegged at $1,346 million, suggesting a rise of almost 4% from the prior-year quarter’s reported figure. The consensus mark for 2021 revenues is pegged at $5,170 million, indicating an increase of 5.6% from the year-ago period’s reported figure.

Although the Zacks Consensus Estimate for quarterly earnings has moved down by a penny in the past 30 days to 58 cents per share, the projection suggests growth of 9.4% from the figure reported in the prior-year quarter. The company’s consensus mark for the 2021 bottom line is pegged at $2.97 per share, indicating a decline of almost 5% from the year-ago period’s reported figure. The developer, manufacturer and marketer of household, personal care and specialty products has a trailing four-quarter earnings surprise of 6.3%, on average. In the last reported quarter, Church & Dwight delivered an earnings surprise of 12.7%.

Church & Dwight Co., Inc. Price, Consensus and EPS Surprise

 

Church & Dwight Co., Inc. Price, Consensus and EPS Surprise

Church & Dwight Co., Inc. price-consensus-eps-surprise-chart | Church & Dwight Co., Inc. Quote

 

Things To Consider

Church & Dwight is gaining from sturdy demand for its products for a while now. The company also continues to benefit from its brand strength, courtesy of its regular innovation and synergies drawn from its buyouts. In this regard, gains from the buyouts of Matrixx Initiatives, WATERPIK, BATISTE, FLAWLESS and ARM & HAMMER bode well.

Church & Dwight expects reported sales growth of roughly 5.5%. Organic sales are likely to have increased nearly 4% in 2021. Management expects 2021 adjusted earnings per share (EPS) growth of 6%. For fourth-quarter 2021, the company expects an increase of about 3% in reported sales. Organic sales are estimated to have grown nearly 2%, given the temporary supply constraints. Church & Dwight envisions adjusted EPS of 61 cents in the quarter, suggesting a 15% increase from the year-ago quarter’s figure.

Church & Dwight expects input and transportation costs to remain elevated in the quarter under review. This is likely to have dented gross margin in the quarter. Management expects additional input costs of $170 million for 2021. Thanks to the increased cost inflation, the company expects 2021 gross margin contraction of 170 basis points. That being said, reduced coupons and promotions, lower SG&A, reduced marketing and the announced price hikes are likely to offer some respite. The company persistently faces supply-chain constraints as well as raw material and labor shortages.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict 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 odds 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 carries a Zacks Rank #3 and has an Earnings ESP of -0.57%.

Some Stocks With Favorable Combinations

Here are some companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat.

Mondelez International (MDLZ - Free Report) currently has an Earnings ESP of +1.57% and a Zacks Rank #3. MDLZ is likely to register top-and bottom-line growth when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $7.5 billion, suggesting growth of 3.3% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Mondelez International’s quarterly earnings is unchanged in the past 30 days at 72 cents per share, suggesting growth of 7.5% from the year-ago quarter’s reported number. MDLZ delivered an earnings surprise of 3.3%, on average, in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hershey (HSY - Free Report) currently has an Earnings ESP of +0.90% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021 numbers. The Zacks Consensus Estimate for quarterly earnings has moved up by a couple of cents in the past 30 days to $1.63 per share, calling for a 9.4% rise from the year-ago quarter’s reported number.

Hershey’s top line is also expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.3 billion, suggesting a rise of 3.4% from the figure reported in the prior-year quarter. HSY delivered an earnings beat of 4.4%, on average, in the trailing four quarters.

Coty Inc. (COTY - Free Report) currently has an Earnings ESP of +37.14% and a Zacks Rank #3. COTY is anticipated to register top-line growth when it reports second-quarter fiscal 2022 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.6 billion, indicating an improvement of 13.8% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Coty’s bottom line has remained unchanged in the past 30 days at 12 cents per share. However, the consensus estimate for earnings suggests a decline of 29.4% from the year-ago quarter’s reported figure. COTY delivered an earnings beat of 66.4%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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