NYSE$CHD

Church & Dwight Co Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Church & Dwight's Q3 2021 results exceeded expectations, driven by strong consumer demand and effective pricing actions.

Church & Dwight reported a 5.7% increase in net sales to $1,311.4 million, with organic sales growing by 3.7%. EPS increased by 8.2% to $0.92 per share, and adjusted EPS rose by 14.3% to $0.80 per share, exceeding the company's outlook. The company also announced a $1 billion stock repurchase program.

  • Net sales increased by 5.7% to $1,311.4 million, driven by growth in domestic, international, and specialty products segments.
  • Organic sales grew by 3.7%, exceeding the company's outlook of 1.5%.
  • Adjusted EPS increased by 14.3% to $0.80 per share, surpassing the company's adjusted outlook of $0.70 per share.
  • The company announced a new stock repurchase program authorizing up to $1 billion of the Company's common stock.

Headline financials

Total Revenue

$1.31B

Previous: $1.24B+5.7%
EPS (adj)

$0.80

Previous: $0.70+14.3%
Domestic Organic Growth

2.8%

Previous: 10.7%-73.8%
International Organic Growth

2.3%

Previous: 11.6%-80.2%
Specialty Products Organic Growth

18.5%

Previous: -3.4%+644.1%
Capital Expenditures

-$64.1M

Previous: -$54.6M-17.4%
Free Cash Flow

$166M

Previous: $162M+2.9%
Net Income

$230M

Previous: $216M+6.6%
Operating Income

$301M

Previous: $274M+10.1%
Gross Profit

$579M

Previous: $565M+2.5%
Cash & Equivalents

$180M

Previous: $549M-67.2%
Total Assets

$7.38B

Previous: $7.08B+4.3%
Stock-Based Comp

$3.5M

Previous: $2.9M+20.7%

Revenue & EPS history

Church & Dwight · Revenue · Quarterly

$1.31B

Q3 2021+5.7%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Church & Dwight · $1.31B total across 4 segments · Q3 2021

  • Household Products
    $536M+6.8%
  • Personal Care
    $463M+2.1%
  • Consumer International
    $227M+6.3%
  • Specialty Products
    $86.3M+18.5%

Forward guidance

The company expects full year 2021 reported sales growth to be approximately 5.5% and organic sales growth to be approximately 4%. Adjusted EPS growth is expected to be 6%. For Q4, the company expects reported sales growth of approximately 3% and organic sales growth of approximately 2%. Adjusted EPS is expected to be $0.61 per share, +15% from last year’s adjusted Q4 EPS.

Tailwinds

  • Expects full year 2021 reported sales growth to be approximately 5.5%.
  • Expects full year 2021 organic sales growth to be approximately 4%.
  • Expects full year 2021 adjusted EPS growth of 6%.
  • Expects Q4 adjusted EPS to be $0.61 per share, +15% from last year’s adjusted Q4 EPS.
  • Marketing expense is projected to be 13% of net sales in Q4 to continue to support our brands.

Headwinds

  • Expects reported sales growth of approximately 3% in Q4 as we are temporarily constrained by supply.
  • Expects organic sales growth of approximately 2% in Q4 as we are temporarily constrained by supply.
  • Expects full year gross margin to decrease 170 basis points.
  • Now expect an incremental $170 million for the full year in input costs (previously $125 million).
  • Expect input costs and transportation costs to remain elevated in Q4 and expect significant incremental cost increases in 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+0.2%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.4%

Avg return

30 days after

58%

40 / 69 earnings

Positive

+11.3%

Q3 2018

Best reaction

-8.8%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.9%-2.2%-1.3%
Q4 2025+5.7%+9.4%+14.0%
Q3 2025+5.5%+6.0%+4.1%
Q1 2025-7.0%-7.3%-1.0%
Q4 2024-1.5%+0.1%+3.8%
Q3 2024+3.1%+3.3%+10.2%
Q2 2024-0.1%+1.6%+1.9%
Q1 2024-0.1%+0.6%+0.7%
Q4 2023-1.6%-1.0%-1.5%
Q3 2023-5.5%-3.6%+3.7%
Q2 2023-0.3%+0.9%-2.8%
Q1 2023+5.6%+5.5%+2.1%
Q4 2022+4.4%+4.3%+5.5%
Q3 2022-3.1%-5.3%+3.1%
Q2 2022-7.9%-9.0%-11.3%
Q1 2022-6.3%-8.2%-13.3%
Q4 2021+4.0%+4.6%+0.0%
Q3 2021+2.8%+4.2%+9.4%
Q2 2021-1.5%-3.6%-4.8%
Q1 2021+1.6%+5.9%+1.6%
Q4 2020-3.4%-4.5%-9.4%
Q3 2020+0.2%+0.9%-2.2%
Q2 2020+3.7%+6.4%+5.4%
Q1 2020+4.2%+7.4%+9.8%
Q4 2019+3.2%+2.0%-4.5%
Q3 2019-8.8%-10.8%-6.9%
Q2 2019-3.0%-3.2%+4.1%
Q1 2019+1.0%-1.0%+1.0%
Q4 2018-4.0%-3.1%+0.4%
Q3 2018+11.3%+14.3%+11.5%
Q2 2018+3.7%+2.4%+2.6%
Q1 2018+3.2%+4.1%+3.2%
Q4 2017+3.3%+4.8%+7.8%
Q3 2017-4.9%-5.2%+1.4%
Q2 2017-4.4%-5.7%-4.8%
Q1 2017+4.2%+3.2%+7.8%
Q4 2016+5.2%+6.1%+9.2%
Q3 2016-7.3%-3.0%-8.1%
Q2 2016+3.0%+3.4%+2.4%
Q1 2016+3.1%
Q4 2015+2.4%
Q3 2015-2.3%
Q2 2015+2.4%
Q1 2015+1.8%
Q4 2014+1.9%
Q3 2014+1.6%
Q2 2014+2.2%
Q1 2014-0.7%
Q4 2013+1.6%
Q3 2013+0.1%
Q2 2013-3.3%
Q1 2013+1.5%
Q4 2012+2.3%
Q3 2012+1.4%
Q2 2012-4.4%
Q1 2012+0.6%
Q4 2008-0.4%
Q1 2009-0.4%
Q4 2011-0.4%
Q3 2011+0.0%
Q2 2011-1.4%
Q1 2010-3.5%
Q1 2011+0.8%
Q4 2010+1.1%
Q3 2010-0.4%
Q3 2009-0.4%
Q2 2009+0.4%
Q4 2009+0.4%
Q2 2010+0.4%

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