What’s in store for Church & Dwight (CHD) in Q1 results? – April 26, 2022
Church & Dwight Co., Inc. (CHD – Free Report) is expected to see year-over-year growth in revenue when it reports first-quarter 2022 results on April 28. – figure reported for the quarter of the year.
The Zacks consensus estimate for earnings has fallen a penny over the past 30 days to 76 cents per share. This indicates a decrease of 8.4% compared to the figure recorded during the period of the previous year. Church & Dwight has a four-quarter earnings surprise of 8.8% on average. This consumer products company posted a surprise profit of 10.3% in the last reported quarter.
Church & Dwight Co., Inc. Price, Consensus, and EPS Surprise
Key Factors to Consider
Church & Dwight benefited from brand strength due to its focus on buyouts and innovation. In December 2021, CHD completed the acquisition of TheraBreath, a leading brand in the mouthwash category, which marks the company’s 14th strong brand. That likely helped its first-quarter results. Other than that, the takeovers of FLAWLESS and WATERPIK have been cautious additions to Church & Dwight’s portfolio, which has performed very well recently.
In addition, the company’s regular innovation contributes to improving brand positions and market shares in consumer categories. In its latest earnings call, Church & Dwight said it was on track to undertake impressive product launches in 2022. These factors likely played a positive role in the quarter under review.
However, CHD encountered major challenges related to inflation, raw materials, distribution and labor. In 2021, Church & Dwight’s cost of goods sold inflation increased $250 million or 9% year-over-year. On its fourth quarter earnings call, management said it expects input costs and transportation costs to rise in 2022. It also expects labor shortages in the U.S. over the entire year, which worsened due to the Omicron variant. These factors raise concerns for the quarter under review. That said, Church & Dwight has resorted to incremental pricing across its portfolio to counter rising costs. In its latest earnings call, management said it plans to raise prices on nearly 80% of its product portfolio from February 2022 and intends to make further moves. increases in 2022.
Management also said that in 2022, it expects various categories to remain at high consumption levels, such as laundry detergent, gummy vitamins, laundry additives, hair growth supplements and litter. for cats. CHD is likely to continue to benefit from consumers’ focus on maintaining cleaner homes and self-care routines. Additionally, the return to pre-pandemic social activities bodes well. For the first quarter of 2022, the company expects reported sales to increase 3-4% and organic sales are expected to have increased 1-2%.
What the Zacks Model Reveals
Our proven model predicts an earnings beat for Church & Dwight this time. The combination of a positive earnings ESP and a Zacks rank of #1 (strong buy), 2 (buy), or 3 (hold) increases the chance of an earnings beat, which is the case here.
Church & Dwight currently has a #3 Zacks rank and +2.69% Earnings ESP. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.
Other actions with the favorable combination
Here are a few other companies you might want to consider, as our model shows they also have the right combination of elements to post a pace of earnings in the reportable quarter.
Hershey (HSY – Free Report) has a +1.84% earnings ESP and a #2 Zacks rank. It is expected to record an increase in revenue and net income when it reports first quarter 2022 results. Zacks’ consensus estimate for Hershey’s revenue is set at $2,482 million, indicating a growth of 8.1% compared to the figure indicated in the quarter of the previous year. You can see the full list of today’s Zacks #1 Rank stocks here.
Zacks’ consensus estimate for Hershey’s quarterly earnings is pegged at $2.10 per share, suggesting a 9.4% increase from the figure reported a year ago. HSY has posted a 4.3% earnings pace, on average, over the past four quarters.
Inter Parfums (IPAR – Free Report) has a +5.60% Earnings ESP and Zacks Rank #2. The company is expected to report revenue growth when it reports first quarter 2022 results. Inter Parfums revenue consensus mark is set at $219.4 million, indicating an increase of 10, 5% compared to the quarter of the previous year.
Zacks’ consensus estimate for Inter Parfums’ net income is 83 cents per share, suggesting a decline of 4.6% from the figure reported a year ago. IPAR has a surprise on earnings for the last four quarters of 46.7% on average.
The Estée Lauder Companies (EL – Free Report) has a +0.97% Earnings ESP and a Zacks Rank #3. The company is expected to report revenue and earnings growth when it reports third quarter fiscal 2022 results. Estee Lauder’s revenue consensus mark is set at $4,292 million, which which indicates an increase of 11.1% over the prior year quarter.
The Zacks Consensus estimate for Estee Lauder’s quarterly EPS of $1.65 suggests a 0.6% increase from the figure reported a year ago. EL has a surprise on earnings for the last four quarters of 26.5% on average.
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