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Factors to Know Ahead of Church & Dwight's (CHD) Q3 Earnings

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Church & Dwight Co., Inc. (CHD - Free Report) is scheduled to report third-quarter 2019 numbers on Oct 31, before the opening bell. We note that in the trailing four quarters, the company’s bottom line has outperformed the Zacks Consensus Estimate by an average of 5.3%. In the last reported quarter, the company delivered a positive earnings surprise of 9.6%.

Estimates Appear Bright

The Zacks Consensus Estimate for third-quarter earnings has remained unchanged over the past 30 days at 61 cents, suggesting an increase of 5.2% from the year-ago quarter’s reported figure.

For revenues, the consensus mark is pegged at $1,103 million, indicating growth of 6.3% from the figure reported in the year-ago quarter.

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

 

Factors at Play

Church & Dwight’s top line in third-quarter 2019 is likely to have benefited from continued category growth, acquisitions and market share gains. Further, the company is expected to have continued with its robust organic sales growth trend driven by solid focus on product innovations, strong international business and portfolio expansion.

In its international business, brands like BATISTE, ARM & HAMMER, VITAFUSION, STERIMAR and FEMFRESH are driving growth for the company. The same is likely to have continued in the quarter under review. Also, acquisitions have played a key role in boosting Church & Dwight’s international presence.

These apart, higher broad-based sales of household and personal care products across key global markets are likely to have contributed to Church & Dwight’s performance.  In the last earnings call, management guided for reported sales growth of 6% and organic sales growth of 3% for third-quarter 2019.

Additionally, the company is on track with efficient pricing and productivity enhancement initiatives, which are likely to have cushioned gross margin amid rising commodity and input costs. Management expects adjusted earnings of 60 cents per share in the third quarter, which indicates an improvement of 3% from the year-ago period reported figure.

What Our Model Says

Our proven model 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 chance of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Church & Dwight has a Zacks Rank #2 and an Earnings ESP of +0.22%.

Other Stocks Poised to Beat Earnings Estimates

Here are a few other companies you may want to consider, as our model shows that these too have the right combination to post an earnings beat:

e.l.f. Beauty, Inc. (ELF - Free Report) has an Earnings ESP of +10.71% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Newell Brands Inc. (NWL - Free Report) has an Earnings ESP of +6.73% and a Zacks Rank #3.

Tyson Foods, Inc. (TSN - Free Report) has an Earnings ESP of +1.90% and a Zacks Rank #3.

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