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The Zacks Consensus Estimate for revenues is pegged at $1,421 million, suggesting 7.3% growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at 79 cents per share. The projection indicates an increase of roughly 4% from the figure reported in the year-ago period quarter. Church & Dwight has a trailing four-quarter earnings surprise of 9.8%, on average.
Factors to Consider
Church & Dwight has been gaining from its prudent buyouts, solid innovation and favorable consumption demand. The company’s U.S. portfolio saw consumption growth in 12 out of 17 categories in the first quarter of 2023. Another factor working for Church & Dwight is the online channel.
Church & Dwight Co., Inc. Price, Consensus and EPS Surprise
Solid pricing actions to counter cost inflation have been aiding the company’s organic sales. CHD’s organic sales increased 5.7% in the first quarter due to favorable pricing to the tune of 5.7%. For 2023, management expects pricing and productivity to more than offset cost inflation. These aspects bode well for the quarter under review. We expect a 3.3% increase in organic sales for the second quarter of 2023, with the pricing/product mix anticipated to be up 6.1%.
However, the company has been witnessing increasing marketing and SG&A expenses for the past few quarters. For 2023, Church & Dwight intends to increase marketing expenses as a percent of sales by 50 bps from the year-ago period.
It also expects SG&A both in dollars and as a percent of net sales to increase from 2022 as the company’s incentive compensation plan returns to normal levels in 2023. These factors, along with a rise in the tax rate and interest expenses, may have impacted the adjusted EPS in the second quarter.
What the Zacks Model Unveils
Our proven model predicts 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 chances of an earnings beat, which is the case here.
Church & Dwight has an Earnings ESP of +1.39% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Molson Coors (TAP - Free Report) currently has an Earnings ESP of +12.96% and a Zacks Rank #1. The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Molson Coors’ quarterly revenues is pegged at $3.2 billion, which implies a rise of almost 10% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS is pegged at $1.49, which indicates a 25.2% jump from the year-ago period figure. TAP has a trailing four-quarter earnings surprise of 32.1%, on average.
Beyond Meat (BYND - Free Report) currently has an Earnings ESP of +14.60% and a Zacks Rank of 2. BYND is expected to register a top-line decrease when it reports second-quarter 2023 numbers.
The Zacks Consensus Estimate for Beyond Meat’s quarterly revenues is pegged at roughly $111.3 million, calling for a decline of 24.3% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 81 cents, which suggests an improvement of 47.1% from the figure reported in the year-ago fiscal quarter. BYND has a trailing four-quarter negative earnings surprise of 14.1%, on average.
Coty (COTY - Free Report) currently has an Earnings ESP of +28.57% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
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Is a Beat in Store for Church & Dwight (CHD) in Q2 Earnings?
Church & Dwight Co., Inc. (CHD - Free Report) is likely to register top-and-bottom-line growth when it reports second-quarter 2023 earnings on Jul 27.
The Zacks Consensus Estimate for revenues is pegged at $1,421 million, suggesting 7.3% growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the bottom line has remained unchanged in the past 30 days at 79 cents per share. The projection indicates an increase of roughly 4% from the figure reported in the year-ago period quarter. Church & Dwight has a trailing four-quarter earnings surprise of 9.8%, on average.
Factors to Consider
Church & Dwight has been gaining from its prudent buyouts, solid innovation and favorable consumption demand. The company’s U.S. portfolio saw consumption growth in 12 out of 17 categories in the first quarter of 2023. Another factor working for Church & Dwight is the online channel.
Church & Dwight Co., Inc. Price, Consensus and EPS Surprise
Church & Dwight Co., Inc. price-consensus-eps-surprise-chart | Church & Dwight Co., Inc. Quote
Solid pricing actions to counter cost inflation have been aiding the company’s organic sales. CHD’s organic sales increased 5.7% in the first quarter due to favorable pricing to the tune of 5.7%. For 2023, management expects pricing and productivity to more than offset cost inflation. These aspects bode well for the quarter under review. We expect a 3.3% increase in organic sales for the second quarter of 2023, with the pricing/product mix anticipated to be up 6.1%.
However, the company has been witnessing increasing marketing and SG&A expenses for the past few quarters. For 2023, Church & Dwight intends to increase marketing expenses as a percent of sales by 50 bps from the year-ago period.
It also expects SG&A both in dollars and as a percent of net sales to increase from 2022 as the company’s incentive compensation plan returns to normal levels in 2023. These factors, along with a rise in the tax rate and interest expenses, may have impacted the adjusted EPS in the second quarter.
What the Zacks Model Unveils
Our proven model predicts 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 chances of an earnings beat, which is the case here.
Church & Dwight has an Earnings ESP of +1.39% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Molson Coors (TAP - Free Report) currently has an Earnings ESP of +12.96% and a Zacks Rank #1. The company’s top and bottom lines are expected to increase year over year when it reports second-quarter 2023 results. The Zacks Consensus Estimate for Molson Coors’ quarterly revenues is pegged at $3.2 billion, which implies a rise of almost 10% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS is pegged at $1.49, which indicates a 25.2% jump from the year-ago period figure. TAP has a trailing four-quarter earnings surprise of 32.1%, on average.
Beyond Meat (BYND - Free Report) currently has an Earnings ESP of +14.60% and a Zacks Rank of 2. BYND is expected to register a top-line decrease when it reports second-quarter 2023 numbers.
The Zacks Consensus Estimate for Beyond Meat’s quarterly revenues is pegged at roughly $111.3 million, calling for a decline of 24.3% from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 81 cents, which suggests an improvement of 47.1% from the figure reported in the year-ago fiscal quarter. BYND has a trailing four-quarter negative earnings surprise of 14.1%, on average.
Coty (COTY - Free Report) currently has an Earnings ESP of +28.57% and a Zacks Rank #2. The company’s top and bottom lines are expected to increase year over year when it reports fourth-quarter fiscal 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.3 billion, which implies a rise of 13.2% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 2 cents, which indicates 300% growth from the year-ago period figure. COTY has a trailing four-quarter earnings surprise of 145%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.