Church & Dwight Q3 Earnings: Can NYSE:CHD Hit Its $0.67 EPS Target?

in EARNINGS/INVESTING IDEAS by

Church & Dwight Co., Inc. (NYSE:CHD) is scheduled to report Q3 earnings results on October 29, 2020.

The company is expected to report earnings of $0.67/share on revenue of $1.2 billion. The consensus earnings per share (EPS) of $0.67/share is based on a poll of 15 analysts and represents a growth in eps of 1.9% over the same quarter last year, when the company reported earnings of $0.66/share.

The revenue forecast of $1.2 billion based on a poll of 13 analysts implies a year-over-year (YoY) growth in revenue of 10.1%. Last year the company reported $1.089 billion in revenue for the quarter.

Expected to report EPS growth of 1.9% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $1,199.90 $1,089.40 10.1%
EPS $0.67 $0.66 1.9%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, missed 1 quarter, and met expectations 1 quarter.

What are your expectations from Church & Dwight Co., Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.63 $0.77 21.9% Beat
Q1, 2020 $0.77 $0.83 7.4% Beat
Q4, 2019 $0.55 $0.55 0.0% Met
Q3, 2019 $0.61 $0.66 8.3% Beat
Q2, 2019 $0.52 $0.57 9.3% Beat
Q1, 2019 $0.66 $0.70 6.0% Beat
Q4, 2018 $0.58 $0.57 −2.4% Missed
Q3, 2018 $0.54 $0.58 7.2% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 7.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 31, 2020 $90.06 $96.33 7.0% Increase
April 30, 2020 $68.37 $71.22 4.2% Increase
January 31, 2020 $72.78 $74.22 2.0% Increase
October 31, 2019 $75.41 $68.78 −8.8% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.82, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.82 implies a 0.2% chance of earnings manipulation.

Fundamentals And Technical Analysis

Church & Dwight Co., Inc. is currently trading at $91.91/share, up – for the day. The company is trading at approximately 92.9% of its 52-week high of $98.96/share. The company’s stock price is down −4.6% since the last earnings report and down −0.4% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 46.89 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:CHD Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 31.52 and a forward P/E multiple of 31.86.

Church & Dwight Co., Inc.’s current share price also implies a price-to-book (P/B) multiple of 7.58. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $91.91
P/E Ratio 31.5x
P/E Ratio (Fwd) 31.9x
PEG Ratio 1.6
Total Debt / Total Capital 8.3%
Levered Free Cash Flow $1.031 billion
EV / EBITDA 21.7x

Finbox

Church & Dwight Co., Inc. is a large-cap stock with a market capitalization of $22.73 billion and a total enterprise value of $24.323 billion. The company operates in the Consumer Staples sector and the Household Products industry.

Church & Dwight Co., Inc. develops, manufactures, and markets household, personal care, and specialty products in the United States and internationally. It operates in three segments: Consumer Domestic, Consumer International, and Specialty Products Division. The company offers cat litters, carpet deodorization, laundry detergents, and baking soda, as well as other baking soda based products under the ARM & HAMMER brand; condoms, lubricants, and vibrators under the TROJAN brand; stain removers, cleaning solutions, laundry detergents, and bleach alternatives under the OXICLEAN brand; battery-operated and manual toothbrushes under the SPINBRUSH brand; home pregnancy and ovulation test kits under the FIRST RESPONSE brand; depilatories under the NAIR brand; oral analgesics under the ORAJEL brand; laundry detergents under the XTRA brand; gummy dietary supplements under the L’IL CRITTERS and VITAFUSION brands; dry shampoos under the BATISTE brand; water flossers and replacement showerheads under the WATERPIK brand; and hair removal products under the FLAWLESS brand. It provides specialty products, including animal productivity products, such as MEGALAC rumen bypass fat, a supplement, which enables cows to maintain energy levels during the period of high milk production; BIO-CHLOR and FERMENTEN, which are designed to help reduce health issues associated with calving, as well as provides needed protein; and CELMANAX refined functional carbohydrate, a yeast based prebiotic. In addition, the company offers sodium bicarbonate; and cleaning and deodorizing products. It sells its consumer products through supermarkets, mass merchandisers, wholesale clubs, drugstores, convenience stores, home stores, dollar and other discount stores, pet and other specialty stores, and Websites and other e-commerce channels; and specialty products to industrial customers and livestock producers through distributors. The company was founded in 1846 and is headquartered in Ewing, New Jersey.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.