NYSE$CHD

Church & Dwight Co Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Net sales increased slightly, but organic sales declined due to volume decreases, while EPS exceeded expectations due to higher sales and lower expenses.

Church & Dwight reported a slight increase in net sales but a decline in organic sales for Q3 2022. EPS exceeded company outlook due to higher sales, lower SG&A expense, and a shift in marketing spend. The company adjusted its full-year outlook, expecting a sales growth of approximately 3% and organic sales growth of about 1%.

  • Net sales increased by 0.4%, driven by domestic sales growth, while international sales decreased.
  • Organic sales declined by 0.7% due to lower volumes, offset by positive pricing.
  • EPS was $0.76, a decrease compared to both reported and adjusted EPS in the prior year.
  • The company's outlook includes sales growth of approximately 3% and organic sales growth of approximately 1% for the full year.

Headline financials

Total Revenue

$1.32B

Previous: $1.31B+0.4%
EPS (adj)

$0.76

Previous: $0.80-5.0%
Total Organic Sales Growth

-0.7%

No prior period
Domestic Organic Growth

-1.7%

Previous: 2.8%-160.7%
International Organic Growth

3.2%

Previous: 2.3%+39.1%
Specialty Products Organic Growth

1.0%

Previous: 18.5%-94.6%
Capital Expenditures

-$98.1M

Previous: -$64.1M-53.0%
Free Cash Flow

$89M

Previous: $166M-46.5%
Net Income

$187M

Previous: $230M-18.8%
Operating Income

$254M

Previous: $301M-15.8%
Gross Profit

$550M

Previous: $579M-5.1%
Cash & Equivalents

$438M

Previous: $180M+143.1%
Total Assets

$8.29B

Previous: $7.38B+12.3%
Stock-Based Comp

$4.1M

Previous: $3.5M+17.1%

Revenue & EPS history

Church & Dwight · Revenue · Quarterly

$1.32B

Q3 2022+0.4%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Church & Dwight · $1.32B total across 4 segments · Q3 2022

  • Household Products
    $592M+10.6%
  • Personal Care
    $418M-9.6%
  • Consumer International
    $220M-3.2%
  • Specialty Products
    $87.2M+1.0%

Forward guidance

The company expects full year 2022 reported sales growth to be approximately 3% and organic sales growth to be approximately 1%. Adjusted EPS is expected to be in the range of $2.93-$2.97.

Tailwinds

  • Full year 2022 reported sales growth to be approximately 3%.
  • Full year organic sales growth to be approximately 1%.
  • Adjusted EPS to be in the range of $2.93-$2.97.
  • Fill level recovery has improved.
  • Continue to invest incrementally in marketing behind brands in Q4 to ensure long term growth.

Headwinds

  • Full year reported gross margin to be down versus 2021, Inflation to outpace pricing and productivity.
  • Q4, expect reported sales growth of approximately 2%.
  • Organic sales to decline approximately 1%.
  • Gross margin contraction as we experience negative mix within our portfolio.
  • Adjusted EPS of $0.58-$0.62 per share, a 3-9% decrease from last year’s adjusted Q4 EPS.

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 2022

Historical avgQ3 2022

+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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