Winners And Losers Of Q2: Church & Dwight (NYSE:CHD) Vs The Rest Of The Household Products Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Church & Dwight (NYSE:CHD) and the best and worst performers in the household products industry.

Household products stocks are generally stable investments, as many of the industry's products are essential for a comfortable and functional living space. Recently, there's been a growing emphasis on eco-friendly and sustainable offerings, reflecting the evolving consumer preferences for environmentally conscious options. These trends can be double-edged swords that benefit companies who innovate quickly to take advantage of them and hurt companies that don't invest enough to meet consumers where they want to be with regards to trends.

The 10 household products stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 0.5% above.

Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.

Thankfully, household products stocks have been resilient with share prices up 6.7% on average since the latest earnings results.

Church & Dwight (NYSE:CHD)

Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE:CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.

Church & Dwight reported revenues of $1.51 billion, up 3.9% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ organic revenue growth estimates but underwhelming earnings guidance for the full year.

Matthew Farrell, Chief Executive Officer, commented, “We are really pleased with another strong quarter. The Company is performing well with all three divisions delivering organic growth. Our outstanding Q2 results reflect the strength of our brands, the early success of our new products, and our perennial focus on execution.

Interestingly, the stock is up 3.5% since reporting and currently trades at $103.55.

Is now the time to buy Church & Dwight? Access our full analysis of the earnings results here, it’s free.

Best Q2: Reynolds (NASDAQ:REYN)

Best known for its aluminum foil, Reynolds (NASDAQ:REYN) is a household products company whose products focus on food storage, cooking, and waste.

Reynolds reported revenues of $930 million, down 1.1% year on year, outperforming analysts’ expectations by 4.2%. The business had a very strong quarter with an impressive beat of analysts’ gross margin and organic revenue growth estimates.

Reynolds achieved the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 5.9% since reporting. It currently trades at $30.28.

Is now the time to buy Reynolds? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Kimberly-Clark (NYSE:KMB)

Originally founded as a Wisconsin paper mill in 1872, Kimberly-Clark (NYSE:KMB) is now a household products powerhouse known for personal care and tissue products.

Kimberly-Clark reported revenues of $5.03 billion, down 2% year on year, falling short of analysts’ expectations by 1.3%. It was a slower quarter as it posted a miss of analysts’ organic revenue growth estimates.

The stock is flat since the results and currently trades at $143.77.

Read our full analysis of Kimberly-Clark’s results here.

Spectrum Brands (NYSE:SPB)

A leader in multiple consumer product categories, Spectrum Brands (NYSE:SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.

Spectrum Brands reported revenues of $779.4 million, up 6% year on year. This number surpassed analysts’ expectations by 3.8%. It was a very strong quarter as it also recorded an impressive beat of analysts’ operating margin and organic revenue growth estimates.

The stock is up 12% since reporting and currently trades at $91.68.

Read our full, actionable report on Spectrum Brands here, it’s free.

Energizer (NYSE:ENR)

Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE:ENR) is one of the world's largest manufacturers of batteries.

Energizer reported revenues of $701.4 million, flat year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ earnings estimates but a miss of analysts’ organic revenue growth estimates.

The stock is up 9.4% since reporting and currently trades at $31.98.

Read our full, actionable report on Energizer here, it’s free.

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