Household Products Q2 Earnings: Clorox (NYSE:CLX) is the Best in the Biz

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 Clorox (NYSE:CLX) 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 decent Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 0.5% above.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. Thankfully, household products stocks have been resilient with share prices up 6.1% on average since the latest earnings results.

Best Q2: Clorox (NYSE:CLX)

Founded in 1913 with bleach as the sole product offering, Clorox (NYSE:CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.

Clorox reported revenues of $1.90 billion, down 5.7% year on year. This print fell short of analysts’ expectations by 2.4%, but it was still a strong quarter for the company with an impressive beat of analysts’ organic revenue growth estimates.

"We closed out the fiscal year with strong margin expansion and double-digit adjusted EPS growth despite substantial disruption and consumption loss from the cyberattack. While fully restoring supply and distribution, as well as recovering nearly all of our market share, we remained relentless in driving our IGNITE strategy forward. We made strong progress as we evolved our portfolio to accelerate profitable growth, completed the implementation of our streamlined operating model and advanced our digital transformation. We achieved all of this while continuing to invest strongly behind our brands to provide superior value in a challenging environment where consumers continue to seek value," said Chair and CEO Linda Rendle.

Clorox delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 12.7% since reporting and currently trades at $151.12.

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

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%. It was a strong quarter for the company with an impressive beat of analysts’ gross margin and organic revenue growth estimates.

The market seems happy with the results as the stock is up 7.3% since reporting. It currently trades at $30.67.

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 for the company with a miss of analysts’ organic revenue growth estimates.

The stock is flat since the results and currently trades at $145.34.

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

Central Garden & Pet (NASDAQ:CENT)

Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQGS:CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.

Central Garden & Pet reported revenues of $996.3 million, down 2.6% year on year, in line with analysts’ expectations. Zooming out, it was a mixed quarter for the company with an impressive beat of analysts’ organic revenue growth estimates but underwhelming earnings guidance for the full year.

The stock is up 1.7% since reporting and currently trades at $38.64.

Read our full, actionable report on Central Garden & Pet here, it’s free.

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, in line with analysts’ expectations. Taking a step back, it was a decent quarter for the company with an impressive beat of analysts’ organic revenue growth estimates but underwhelming earnings guidance for the full year.

The stock is up 2.6% since reporting and currently trades at $102.64.

Read our full, actionable report on Church & Dwight here, it’s free.

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