Q2 Earnings Roundup: Kimberly-Clark (NYSE:KMB) And The Rest Of The Household Products Segment
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at household products stocks, starting with Kimberly-Clark (NYSE:KMB).
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.
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 6.9% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 1.3%. Overall, it was a slower quarter for the company with a miss of analysts’ organic revenue growth estimates.
"I am very proud of how our teams around the world have advanced our new operating model and delivered high-quality, top and bottom-line results in the first half of this year. We have made strong progress while navigating dynamic consumer and retail environments," said Kimberly-Clark Chairman and CEO Mike Hsu.
Unsurprisingly, the stock is down 1.2% since reporting and currently trades at $142.38.
Is now the time to buy Kimberly-Clark? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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, outperforming analysts’ expectations by 3.8%. The business had a very strong quarter with an impressive beat of analysts’ operating margin estimates and organic revenue growth estimates.
The market seems happy with the results as the stock is up 10.3% since reporting. It currently trades at $90.28.
Is now the time to buy Spectrum Brands? Access our full analysis of the earnings results 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, in line with analysts’ expectations. It was a mixed quarter as it posted a decent beat of analysts’ earnings estimates but a miss of analysts’ organic revenue growth estimates.
As expected, the stock is down 1.3% since the results and currently trades at $28.87.
Read our full analysis of Energizer’s results here.
WD-40 (NASDAQ:WDFC)
Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ:WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.
WD-40 reported revenues of $155 million, up 9.4% year on year. This print topped analysts’ expectations by 6.3%. It was a strong quarter with full-year revenue guidance beating analysts’ expectations and a decent beat of analysts’ earnings estimates.
WD-40 scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 13.3% since reporting and currently trades at $249.10.
Read our full, actionable report on WD-40 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. This result was in line with analysts’ expectations. Zooming out, it was a slower quarter as it also logged an impressive beat of analysts’ organic revenue growth estimates but underwhelming earnings guidance for the full year.
The stock is up 3.5% since reporting and currently trades at $103.55.
Read our full, actionable report on Church & Dwight here, it’s free.
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