Back to top

Image: Bigstock

Factors to Know Ahead of Church & Dwight's (CHD) Q1 Earnings

Read MoreHide Full Article

Church & Dwight Co., Inc. (CHD - Free Report) is scheduled to report first-quarter 2020 numbers on Apr 30. The company has trailing four-quarter positive earnings surprise of 6%, on average.

The Zacks Consensus Estimate for first-quarter earnings has moved up by a penny to 76 cents in the past 7 days. The bottom-line projection suggests an increase of 8.6% from the year-ago quarter’s reported figure. Moreover, the consensus mark for revenues is pegged at $1,127 million that indicates growth of 7.8% from the figure reported in the year-ago quarter.

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

 

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

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

 

 

Factors at Play


Church & Dwight has been witnessing a significant increase in demand for its products, including Vitafusion gummy vitamins, Simply Saline and Sterimar nasal hygiene, among others, due to the pandemic. In this regard, management has been undertaking steps to increase short-term production capacity for its cleaning and healthcare products. Also, it has been making efforts to ensure undisrupted supply of its products to support the increased demand.

Apart from this, Church & Dwight is focused on innovation, product launches and investments. The company’s top line has been benefitting from consistent sales growth in household and personal care products along with market share gains. Moreover, WATERPIK and FLAWLESS buyouts have been aiding the company’s performance. Also, strategic pricing efforts and favorable product mix have been boosting organic sales.Additionally, in the international business, brands like BATISTE, ARM & HAMMER and STERIMAR have been driving growth.

However, Church & Dwight has been grappling with higher SG&A expenses and marketing costs for a while now. Moreover, impact of adverse currency fluctuations along with intense competition from other well-established players in the consumer products industry cannot be ignored.

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 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 #2 and an Earnings ESP of +3.56%.

Other Stocks WithFavorable Combination

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

The J. M. Smucker Company (SJM - Free Report) currently has an Earnings ESP of +1.66% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Campbell Soup Company (CPB - Free Report) currently has an Earnings ESP of +21.06% and a Zacks Rank #2.

Kellogg Company (K - Free Report) currently has an Earnings ESP of +3.23% and a Zacks Rank of 3.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers now >>

Published in