Church & Dwight Set to Reveal Q4 Results: Analysts Anticipate Strong Earnings Growth

Ewing, New Jersey-based Church & Dwight Co., Inc. (CHD) develops, manufactures, and markets household, personal care, and specialty products. With a market capitalization of $25.8 billion, the company operates through three segments: Consumer Domestic, Consumer International, and Specialty Products.

Upcoming Financial Report Sparks Interest Among Analysts

The household and personal products manufacturer is scheduled to announce its fourth-quarter financial results on Friday, Jan. 31, before the market opens. Analysts project a non-GAAP profit of $0.77 per share, reflecting an 18.5% increase from the $0.65 per share reported in the same quarter last year. CHD has consistently exceeded Wall Street’s earnings expectations in the past four quarters. In the latest quarter reported, the company achieved an adjusted EPS of $0.79, marking a year-over-year growth of 6.8% and surpassing analyst predictions by 16.2%.

Fiscal Forecasts Indicate Strong Growth

For the full fiscal year 2024, CHD’s adjusted EPS is expected to be $3.44, which represents an 8.5% rise from $3.17 in fiscal 2023. Analysts anticipate a continued upward trend in fiscal 2025, forecasting earnings to reach $3.74 per share, an increase of 8.7% year-over-year.

Stock Performance Shows Mixed Results

During the past 52 weeks, CHD stock increased by 5.9%, slightly outperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 4.7% rise, but lagging behind the S&P 500 Index’s impressive 24.4% gain.

Positive Q3 Report Boosts Market Confidence

Following the release of its robust Q3 results on Nov. 1, CHD’s stock climbed 4.8%. The company reported a 3.8% increase in net sales, reaching $1.5 billion, driven by higher volumes and a favorable mix of products and pricing. Sales in its Consumer International segment, which includes acne treatment and mouthwash products, surged 9.5% year-over-year, totaling $267.7 million.

Despite this growth, profitability was impacted by a $357.1 million impairment expense incurred during the quarter. However, after adjusting for non-recurring items, CHD’s non-GAAP income from operations rose modestly by 1.6% year-over-year to $267.2 million.

Analyst Ratings Reflect Cautious Optimism

The consensus opinion on CHD stock remains moderately optimistic, with a general “Moderate Buy” rating. Among 23 analysts covering the stock, nine recommend a “Strong Buy,” 11 suggest a “Hold,” and three advocate for a “Strong Sell.” The average price target sits at $109.05, indicating a modest potential upside of 5.4% from current price levels.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information provided is intended solely for informational purposes. For further information, please refer to the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.