Church & Dwight Faces Investor Challenges Despite Solid Earnings

With a market cap of $25.7 billion, Church & Dwight Co., Inc. (CHD) stands out as a major player in the consumer goods industry. The company, based in Ewing, New Jersey, offers a variety of well-known brands including Arm & Hammer, Trojan, OxiClean, and Vitafusion.

Stock Performance Lags Behind Major Indices

In the past 52 weeks, Church & Dwight’s shares have increased by 8.3%, although this growth is modest compared to the broader S&P 500 Index ($SPX), which has risen 22.3% over the same period and returned 4% in 2025.

The company also fell short when compared to the Consumer Staples Select Sector SPDR Fund’s (XLP) 10.9% gains and its 2.5% return in 2025.

Q4 Earnings Show Strength, But Q1 Guidance Disappoints

Despite posting strong Q4 earnings, Church & Dwight’s stock encountered challenges, partly due to a less optimistic Q1 guidance. Shares dropped by 1.5% following the earnings report on January 31. Revenue for the quarter was reported at $1.58 billion, reflecting a 3.5% year-over-year increase, and surpassed analyst expectations of $1.56 billion by 1.1%. Adjusted EPS stood at $0.77, in line with forecasts, while adjusted EBITDA reached $377.6 million—16.9% above estimates, resulting in a margin of 23.9%. However, the Q1 2025 guidance fell short of investor expectations, with projected revenue of $1.52 billion below the anticipated $1.55 billion, and adjusted EPS expectations at $0.90, below the predicted $0.98.

Over the current fiscal year, ending in December, analysts predict an adjusted EPS increase of 7.6% to $3.70. Notably, Church & Dwight has consistently exceeded or met consensus estimates in each of the previous four quarters.

Analyst Ratings Remain Optimistic

Among 23 analysts covering the company, the consensus rating for CHD stock is a “Moderate Buy,” reflecting nine “Strong Buy” ratings, 11 “Holds,” and three “Strong Sells.”

This distribution of ratings has remained steady in recent months.

Price Target Updates and Future Projections

On February 4, Barclays (BCS) raised its price target for Church & Dwight to $93, up from $90, while maintaining an “Underweight” rating on the stock following the Q4 earnings report.

The average price target stands at $110.43, indicating a potential upside of approximately 5.2%. The highest forecasted target price of $126 suggests that the stock could increase by as much as 20%.

On the date of publication, Rashmi Kumari did not have any direct or indirect positions in the securities mentioned in this article. All information provided is solely for informational purposes. For more details, please see the Barchart Disclosure Policy.

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