Church & Dwight Co Inc. Earnings: Fourth Straight Quarter of Profit Growth

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

Results: Net income for the cleaning products company rose to $63.8 million (44 cents per share) vs. $47 million (32 cents per share) in the same quarter a year earlier. This marks a rise of 35.8% from the year earlier quarter.

Revenue: Rose 11.3% to $731.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Church & Dwight Co Inc. reported adjusted net income of 53 cents per share. By that measure, the company beat the mean estimate of 51 cents per share. It beat the average revenue estimate of $694.3 million.

Quoting Management: James R. Craigie, Chairman and Chief Executive Officer, commented, “We are proud of the business results we accomplished in 2011. Despite weak consumer demand and intense price competition, we delivered 4% organic sales growth and 12% adjusted EPS growth. In addition, we exited the year with momentum and saw an improvement in organic growth each quarter this year.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 14.6% and in the second quarter, the figure rose 11.2%.

Gross margin shrank 1.2 percentage points to 43.3%. The contraction appeared to be driven by increased costs, which rose 13.8% from the year earlier quarter while revenue rose 11.3%.

Revenue has risen the past four quarters. Revenue increased 6.7% to $701 million in the third quarter. The figure rose 5.3% in the second quarter from the year earlier and climbed 1.2% in the first quarter from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by one cent in the third quarter and by one cent in the second quarter.

Looking Forward: Over the past ninety days, the average estimate for the first quarter of the next fiscal year has fallen from 64 cents per share to 62 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate hasn’t changed from $2.19 per share for the fiscal year.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com