Church & Dwight Co Earnings Cheat Sheet: Profit Rises Again

Church & Dwight Co Inc. (NASDAQ:CHD) reported its results for the second quarter. Church & Dwight Company, Inc. develops, manufactures and markets a broad range of household, personal care and specialty products. The Company focuses its marketing efforts mainly on its eight ‘power brands.

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Church & Dwight Earnings Cheat Sheet for the Second Quarter

Results: Net income for the cleaning products company rose to $82.6 million (57 cents per share) vs. $74.3 million (51 cents per share) in the same quarter a year earlier. This marks a rise of 11.2% from the year earlier quarter.

Revenue: Rose 5.3% to $674.9 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CHD beat the mean analyst estimate of 56 cents per share. Analysts were expecting revenue of $669.6 million.

Quoting Management: James R. Craigie, Chairman and Chief Executive Officer, commented, “We are pleased with our solid second quarter business results in what continues to be a difficult economic environment. The organic sales increase of 3.3% met the Company’s expectations of 3-4% organic sales growth for the quarter. While category consumption continues to be weak in the U.S., we increased share on five of our eight power brands in the quarter.” Consumer Domestic sales were $482.3 million, a $16.8 million increase or 3.6% above the prior year second quarter sales. Second quarter organic sales increased by 2.1%, largely driven by higher sales of ARM & HAMMER Liquid and Powder Laundry Detergents, XTRA Liquid Laundry Detergent, ARM & HAMMER Cat Litter and NAIR depilatories.”

Key Stats:

Gross margin shrank 0.9 percentage point to 44.5%. The contraction appeared to be driven by increased costs, which rose 7.1% from the year earlier quarter while revenue rose 5.3%.

The company beat estimates last quarter after being in line with expectations in the first quarter with net income of 57 cents per share.

The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 1.2% to $642.3 million from the year earlier quarter.

The company has now seen net income rise in two straight quarters. In the first quarter, net income rose 4.5% from the year earlier.

Competitors to Watch: The Procter & Gamble Co. (NYSE:PG), The Clorox Company (NYSE:CLX), Colgate-Palmolive Company (NYSE:CL), Zep, Inc. (NYSE:ZEP), Reckitt Benckiser Group Plc (RB), Pacific Sands, Inc. (PFSD), Spongetech Delivery Systems, Inc. (SPNGQ), PC Group, Inc. (PCGR), and The Stephan Co. (SPCO).

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(Source: Xignite Financials)