Church & Dwight Co. Fourth Quarter Earnings Sneak Peek

Church & Dwight Co., Inc. (NYSE:CHD) will unveil its latest earnings on Tuesday, February 5, 2013. 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.

Church & Dwight Co., Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 57 cents per share, a rise of 7.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 60 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 57 cents during the last month. For the year, analysts are projecting net income of $2.45 per share, a rise of 10.9% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 7 cents, coming in at profit of 66 cents a share versus the estimate of net income of 59 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit rose 18% to $93.9 million (66 cents a share) from $79.6 million (54 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 3.5% to $725.2 million from $701 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.2 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 1.75 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 96.3% to $1.44 billion while liabilities rose by 55.7% to $652.4 million.

Stock Price Performance: Between November 1, 2012 and January 30, 2013, the stock price rose $6.49 (12.7%), from $51.23 to $57.72. The stock price saw one of its best stretches over the last year between April 27, 2012 and May 10, 2012, when shares rose for 10 straight days, increasing 6% (+$3) over that span. It saw one of its worst periods between September 6, 2012 and September 18, 2012 when shares fell for nine straight days, dropping 4.8% (-$2.67) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 11.3% in the fourth quarter of the last fiscal year, 7.5% in the first quarter and 3.2% in the second quarter before increasing again in the third quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 16.1% for the last four quarters.

Wall St. Revenue Expectations: On average, analysts predict $805.1 million in revenue this quarter, a rise of 10.1% from the year-ago quarter. Analysts are forecasting total revenue of $2.92 billion for the year, a rise of 6.2% from last year’s revenue of $2.75 billion.

Analyst Ratings: With seven analysts rating the stock as a buy, two rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

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