Church & Dwight Earnings Cheat Sheet: Solid Results Yield Upward Momentum

Church & Dwight Co Inc. (NASDAQ:CHD) reported its results for the first 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 First Quarter

Results: Net income for Church & Dwight Co Inc. rose to $83.6 million ($1.15/share) vs. $80 million ($1.11/share) in the same quarter a year earlier. A rise of 4.5% from the year earlier quarter.

Revenue: Rose 1.2% to $642.3 million YoY.

Actual vs. Wall St. Expectations: CHD was about in line with expectations as the mean analyst estimate of $1.14/share. Estimates ranged from $1.10 per share to $1.17 per share.

Quoting Management: James R. Craigie, Chairman and Chief Executive Officer, commented, “We are pleased with our solid first quarter business results in what continues to be a difficult economic environment. The organic sales increase of 1.2% exceeded the Company’s expectations of flat to 1% organic sales growth. Consumption continues to be weak in the U.S. and was down in over half of our categories this quarter. However, consumer appeal for our high-quality premium and value-oriented products continues to be strong and we were able to increase share on five of our eight power brands. The other major headwind involved rising commodity costs, which we were able to largely offset through aggressive productivity programs resulting in a gross margin decline versus the year ago quarter of only 10 basis points.”

Key Stats: Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the fourth quarter of the last fiscal year, net income fell 11% while the figure dropped three quarters ago.

Over the last five quarters, revenue has increased 2.6% on average year over year. The biggest increase came in the first quarter of the last fiscal year, when revenue rose 9.2% from the year earlier quarter.

Competitors to Watch: The Procter & Gamble Co. (NYSE:PG), The Clorox Company (NYSE:CLX), Colgate-Palmolive Company (NYSE:CL), Johnson & Johnson (NYSE:JNJ), Clorox (NYSE:CLX), Kimberly-Clark (NYSE:KMB), 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)

Stock Performance: Shares of CHD are unchanged from the previous close of $82.


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