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Church & Dwight (CHD) to Report Q1 Earnings: What's in Store?

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Church & Dwight Co. Inc. (CHD - Free Report) is likely to register top-line growth when it reports first-quarter 2023 results on Apr 27, 2023, before market open. For first-quarter 2023 revenues, the consensus mark is pegged at $1.4 billion, suggesting 4.4% growth from the prior-year quarter’s reported figure.

However, Church & Dwight’s bottom line is likely to decline year over year in the first quarter. The Zacks Consensus Estimate for the company’s first-quarter earnings is pegged at 76 cents per share, which suggests a decline of 8.4% from the year-ago quarter’s reported figure. Also, the consensus mark has remained unchanged in the past 30 days.

We expect total revenues to be up 4% year over year to $1,348.6 million and the bottom line to decrease 9.4% to 75 cents a share in the first quarter of 2023.

In the last reported quarter, the company delivered an earnings surprise of 3.3%. Its earnings outperformed the Zacks Consensus Estimate in the trailing four quarters by 9.1%, on average.

Church & Dwight Co., Inc. Price, Consensus and EPS Surprise

Church & Dwight Co., Inc. Price, Consensus and EPS Surprise

Church & Dwight Co., Inc. price-consensus-eps-surprise-chart | Church & Dwight Co., Inc. Quote

Key Factors to Note

Church & Dwight has been gaining from its robust acquisitions and emphasis on sound innovation. The company continues to profit from strong consumer demand. Church & Dwight has been resorting to incremental pricing across its portfolio to counter rising costs.

For the first quarter of 2023, the company expects roughly 4% increase in reported sales and 1% increase in organic sales growth. In its last earnings call, management highlighted that solid consumption in several businesses during 2022 has offset the slowdown across discretionary brands, including Waterpik and Flawless and reduced consumption growth in the vitamin category. Moreover, management expects gross margin expansion in the first quarter, partly offset by higher marketing and SG&A spending.

The company expects first-quarter adjusted earnings per share (EPS) of approximately 75 cents per share, down 10% from the year-ago quarter’s adjusted EPS. The downside can be attributed to softness in discretionary brands and the timing of equity grants.

What the Zacks Model Unveils

Our proven model conclusively predicts an earnings beat for Church & Dwight this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Church & Dwight currently has a Zacks Rank #3 and an Earnings ESP of +1.46%.

Stocks With Favorable Combination

Here are some other companies you may want to consider, as our model shows that the companies have the right combination of elements to deliver an earnings beat.

TreeHouse Foods (THS - Free Report) has an Earnings ESP of +19.75% and a Zacks Rank #3 at present. The company is slated to report first-quarter 2023 results on May 8. The Zacks Consensus Estimate for its quarterly revenues is pegged at $849.03 million, which suggests a decline of 25.6% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for TreeHouse’s quarterly earnings has moved up 5.4% in the past 30 days at 39 cents per share, suggesting growth of 360% from the year-ago quarter’s reported number. THS’ earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering a positive earnings surprise of 48.8%, on average.

e.l.f. Beauty, Inc. (ELF - Free Report) has an Earnings ESP of +3.77% and a Zacks Rank #2 at present. The company is slated to report fourth-quarter fiscal 2023 results on May 24. The Zacks Consensus Estimate for its quarterly revenues is pegged at $155.1 million, which suggests growth of 47.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for e.l.f. Beauty’s quarterly earnings has been unchanged in the past 30 days at 19 cents per share, suggesting growth of 46.2% from the year-ago quarter’s reported number. ELS’ earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering a positive earnings surprise of 105%, on average.

Colgate-Palmolive (CL - Free Report) has an Earnings ESP of +1.43% and a Zacks Rank #2 at present. The company is expected to report first-quarter 2023 results on Apr 28. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.6 billion, which suggests growth of 5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Colgate-Pamolive’s quarterly earnings has remained unchanged in the past 30 days at 70 cents per share, suggesting a decline of 5.4% from the year-ago quarter’s reported number. CL’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering a positive earnings surprise of 0.4%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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