Church & Dwight Co Inc. Earnings Cheat Sheet: Margins Rise with Revenues, Net Income Rises

Church & Dwight Co Inc. (NYSE:CHD) reported its results for the third 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 Third Quarter

Results: Net income for Church & Dwight Co Inc. rose to $79.6 million (54 cents per share) vs. $69.5 million (48 cents per share) in the same quarter a year earlier. This marks a rise of 14.6% from the year earlier quarter.

Revenue: Rose 6.7% to $701 million from the year earlier quarter.

Actual vs. Wall St. Expectations: CHD beat the mean analyst estimate of 53 cents per share. Analysts were expecting revenue of $691.5 million.

Quoting Management: James R. Craigie, Chairman and Chief Executive Officer, commented, “We are very pleased with our solid third quarter business results in what continues to be a difficult economic environment. The organic sales increase of 4.5% reflects solid volume growth as well as positive pricing. While category consumption continues to be weak in the U.S., we increased share on seven of our eight power brands in the quarter.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 11.2% and in the first quarter, the figure rose 4.5%.

Revenue has now gone up for three straight quarters. In the second quarter, revenue rose 5.3% to $674.9 million while the figure rose 1.2% in the first quarter from the year earlier.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 57 cents versus a mean estimate of net income of 56 cents per share.

Gross margins expanded last quarter, rising 0.2 percentage point to 44.2% from the year earlier quarter. This snaps a streak of two consecutive quarters of shrinking margins.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the fourth quarter is 51 cents per share, dropping from 52 cents a month ago. The average estimate for the fiscal year has remained at $2.19 per share.

Competitors to Watch: The Procter & Gamble Co. (NYSE:PG), The Clorox Company (NYSE:CLX), Colgate-Palmolive Company (NYSE:CL), Zep, Inc. (NYSE:ZEP) and PC Group, Inc. (PCGR).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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