Church & Dwight beat Q3 sales estimates on volume growth, raises FY outlook
Overview
U.S. consumer products maker's Q3 net sales rose 1.0%, beating analyst expectations
Adjusted EPS for Q3 rose 13.6% to $0.92, beating analyst expectations
Company approved new $1 bln share repurchase program
Outlook
Company raises 2026 net sales growth outlook to approximately 0.5% from flat to 1%
Company now expects 2026 organic sales growth of approximately 5%, up from 4%-5%
2026 adjusted EPS growth outlook tightened to approximately 7%, from prior 6%-8% range
Result Drivers
VOLUME GROWTH - Co said organic sales growth was driven primarily by 4.6% volume increase across all divisions
BRAND PERFORMANCE - Co attributed share gains and organic sales growth to innovation, distribution wins and targeted marketing investments in power brands
GROSS MARGIN EXPANSION - Co said gross margin rose 170 bps to 46.8%, driven by higher volume, productivity, tariff refunds and favorable mix from acquisitions and portfolio actions
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $1.60 bln | $1.58 bln (14 Analysts) |
Q3 Adjusted EPS | Beat | $0.92 | $0.90 (16 Analysts) |
Q3 EPS | $0.89 | ||
Q3 Net Income | $212.20 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the household products peer group is "hold."
Wall Street's median 12-month price target for Church & Dwight Co Inc is $105.50, about 0.5% below its October 29 closing price of $106.00
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 25 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)