Church & Dwight Co. Earnings: Profit Increases Again

Church & Dwight Co Inc. (NYSE:CHD) reported net income above Wall Street’s expectations for the first quarter. Church & Dwight 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 First Quarter

Results: Net income for Church & Dwight Co Inc. rose to $95.8 million (66 cents per share) vs. $83.6 million (58 cents per share) in the same quarter a year earlier. This marks a rise of 14.6% from the year-earlier quarter.

Revenue: Rose 7.5% to $690.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Church & Dwight Co Inc. beat the mean analyst estimate of 61 cents per share. It beat the average revenue estimate of $673 million.

Quoting Management: James R. Craigie, Chairman and Chief Executive Officer, commented, “We are very pleased with our first quarter business results in what continues to be a difficult economic environment. The organic sales increase of 8.4% reflects strong volume growth. While category consumption continues to be weak in the U.S., we increased market share on five of our eight power brands in the quarter.”

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the fourth quarter of the last fiscal year, net income rose 35.8% and in the third quarter of the last fiscal year, the figure rose 14.6%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 2 cents in the fourth quarter of the last fiscal year, by one cent in the third quarter of the last fiscal year, and by one cent in the second quarter of the last fiscal year.

Gross margin shrank 1.1 percentage points to 43.8%. The contraction appeared to be driven by increased costs, which rose 9.6% from the year earlier quarter while revenue rose 7.5%.

Revenue has risen the past four quarters. Revenue increased 11.3% to $731.1 million in the fourth quarter of the last fiscal year. The figure rose 6.7% in the third quarter of the last fiscal year from the year earlier and climbed 5.3% in the second quarter of the last fiscal year from the year-ago quarter.

Looking Forward: The average estimate for the second quarter is steady at 59 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from $2.41 per to share to $2.42.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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