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Church & Dwight (CHD) Q3 Earnings Upcoming: Key Things to Note
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Church & Dwight Co., Inc. (CHD - Free Report) is likely to register a top and bottom-line decrease from the respective year-ago fiscal quarter’s reading when it reports third-quarter 2022 earnings on Oct 28. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,300 million, suggesting a fall of 0.9% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 65 cents per share, indicating an 18.8% decline from the figure reported in the prior-year fiscal quarter.
The consumer products company has a trailing four-quarter earnings surprise of 9.8%, on average. CHD delivered an earnings surprise of roughly 7% in the last reported quarter.
Factors to Consider
Church & Dwight has been witnessing a shrinking gross margin for the past few quarters.
Church & Dwight Co., Inc. Price, Consensus and EPS Surprise
On its second-quarter earnings call, Church & Dwight stated that it now expects to witness additional cost inflation of $135 million in 2022, $50 million higher than its earlier expectations. The incremental inflation is mainly associated with raw and packaging materials and the pass-through of similar costs from third-party manufacturers.
The company is undertaking pricing and productivity efforts to counter inflation, but inflation is likely to come at a greater rate than pricing and productivity in 2022. Full-year 2022, as well as the third quarter, are likely to see lower gross margins from the respective year-ago period levels.
Also, management expects a considerable rise in marketing dollar spend in the second half of 2022 compared with the first half. Such aspects raise concerns for the quarter to be reported.
Church & Dwight has been benefiting from strong demand. The company saw consumption gains in 11 out of 17 domestic categories in the last reported quarter. Another factor working for Church & Dwight is the online channel. Gains from buyouts like Zicam and Therabreath have also been aiding.
However, the company expects the robust consumption of value detergents in the second half of 2022 to be negated by sluggishness in discretionary brands like Waterpik and Flawless and reduced vitamin category consumption growth.
For the third quarter of 2022, CHD expects a roughly 2 to 4% increase in reported sales. Organic sales are estimated to rise nearly 1 to 3%. The organic sales view indicates a slowdown in discretionary brands like Waterpik and Flawless and a tough comparison for vitamins with the year-ago period’s Delta variant-led spike.
EPS is projected at 65 cents in the third quarter. This suggests a 19% decline from the year-ago quarter’s adjusted figure due to inflation, elevated expected SG&A expenses and promotional spend.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Church & Dwight this time. 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, which is not the case here.
Church & Dwight has a Zacks Rank #3 and an Earnings ESP of -0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering as our model shows that these have the right combination of elements to beat earnings this season.
The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $2.6 billion, which indicates an improvement of 10.5% from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for the quarterly EPS of $2.07 suggests a 1.4% decline from the figure reported in the year-ago fiscal quarter. HSY has a trailing four-quarter earnings surprise of 8.7%, on average.
Beyond Meat (BYND - Free Report) currently has an Earnings ESP of +1.36% and a Zacks Rank of 3. BYND is likely to register a decline in the top line from the year-earlier quarter’s reported number when it reports third-quarter 2022 results.
The consensus mark for Beyond Meat’s bottom line has declined by a penny over the past 30 days to a loss of $1.10 per share. A loss of 87 cents was reported in the year-ago fiscal quarter.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +1.85% and a Zacks Rank of 3. K is expected to register top-line growth when it reports third-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, which suggests growth of nearly 4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Kellogg's quarterly earnings has remained stable in the past 30 days at 96 cents per share, suggesting a decline of 11.9% from the year-ago quarter’s tally. K delivered an earnings beat of 13.3%, on average, in the trailing four quarters.
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Church & Dwight (CHD) Q3 Earnings Upcoming: Key Things to Note
Church & Dwight Co., Inc. (CHD - Free Report) is likely to register a top and bottom-line decrease from the respective year-ago fiscal quarter’s reading when it reports third-quarter 2022 earnings on Oct 28. The Zacks Consensus Estimate for quarterly revenues is pegged at $1,300 million, suggesting a fall of 0.9% from the prior-year fiscal quarter’s reported figure.
The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 65 cents per share, indicating an 18.8% decline from the figure reported in the prior-year fiscal quarter.
The consumer products company has a trailing four-quarter earnings surprise of 9.8%, on average. CHD delivered an earnings surprise of roughly 7% in the last reported quarter.
Factors to Consider
Church & Dwight has been witnessing a shrinking gross margin for the past few quarters.
Church & Dwight Co., Inc. Price, Consensus and EPS Surprise
Church & Dwight Co., Inc. price-consensus-eps-surprise-chart | Church & Dwight Co., Inc. Quote
On its second-quarter earnings call, Church & Dwight stated that it now expects to witness additional cost inflation of $135 million in 2022, $50 million higher than its earlier expectations. The incremental inflation is mainly associated with raw and packaging materials and the pass-through of similar costs from third-party manufacturers.
The company is undertaking pricing and productivity efforts to counter inflation, but inflation is likely to come at a greater rate than pricing and productivity in 2022. Full-year 2022, as well as the third quarter, are likely to see lower gross margins from the respective year-ago period levels.
Also, management expects a considerable rise in marketing dollar spend in the second half of 2022 compared with the first half. Such aspects raise concerns for the quarter to be reported.
Church & Dwight has been benefiting from strong demand. The company saw consumption gains in 11 out of 17 domestic categories in the last reported quarter. Another factor working for Church & Dwight is the online channel. Gains from buyouts like Zicam and Therabreath have also been aiding.
However, the company expects the robust consumption of value detergents in the second half of 2022 to be negated by sluggishness in discretionary brands like Waterpik and Flawless and reduced vitamin category consumption growth.
For the third quarter of 2022, CHD expects a roughly 2 to 4% increase in reported sales. Organic sales are estimated to rise nearly 1 to 3%. The organic sales view indicates a slowdown in discretionary brands like Waterpik and Flawless and a tough comparison for vitamins with the year-ago period’s Delta variant-led spike.
EPS is projected at 65 cents in the third quarter. This suggests a 19% decline from the year-ago quarter’s adjusted figure due to inflation, elevated expected SG&A expenses and promotional spend.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Church & Dwight this time. 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, which is not the case here.
Church & Dwight has a Zacks Rank #3 and an Earnings ESP of -0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are some companies worth considering as our model shows that these have the right combination of elements to beat earnings this season.
The Hershey Company (HSY - Free Report) currently has an Earnings ESP of +1.94% and a Zacks Rank #3. HSY is likely to register a top-line improvement when it reports third-quarter 2022 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Hershey’s quarterly revenues is pegged at $2.6 billion, which indicates an improvement of 10.5% from the figure reported in the prior-year fiscal quarter.
The Zacks Consensus Estimate for the quarterly EPS of $2.07 suggests a 1.4% decline from the figure reported in the year-ago fiscal quarter. HSY has a trailing four-quarter earnings surprise of 8.7%, on average.
Beyond Meat (BYND - Free Report) currently has an Earnings ESP of +1.36% and a Zacks Rank of 3. BYND is likely to register a decline in the top line from the year-earlier quarter’s reported number when it reports third-quarter 2022 results.
The consensus mark for Beyond Meat’s bottom line has declined by a penny over the past 30 days to a loss of $1.10 per share. A loss of 87 cents was reported in the year-ago fiscal quarter.
Kellogg Company (K - Free Report) currently has an Earnings ESP of +1.85% and a Zacks Rank of 3. K is expected to register top-line growth when it reports third-quarter 2022 numbers.
The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.8 billion, which suggests growth of nearly 4% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Kellogg's quarterly earnings has remained stable in the past 30 days at 96 cents per share, suggesting a decline of 11.9% from the year-ago quarter’s tally. K delivered an earnings beat of 13.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.