Let’s dig into the relative performance of Central Garden & Pet (NASDAQ:CENT) and its peers as we unravel the now-completed Q3 household products earnings season.
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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 1.1% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.3% since the latest earnings results.
Slowest Q3: Central Garden & Pet (NASDAQ:CENT)
Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQ:CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.
Central Garden & Pet reported revenues of $669.5 million, down 10.8% year on year. This print fell short of analysts’ expectations by 5.9%. Overall, it was a softer quarter for the company with a significant miss of analysts’ organic revenue and adjusted operating income estimates.
"We have a lot to be proud of this year. We increased non-GAAP EPS, continued margin expansion, made significant progress on our Cost and Simplicity program, and achieved strong profits in our Pet segment and record cash flow for the company. We accomplished this despite continued soft demand across our Pet segment, in particular in durable pet products, and a difficult garden season," said Niko Lahanas, Central Garden & Pet's new CEO.
Central Garden & Pet delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 3% since reporting and currently trades at $37.66.
Read our full report on Central Garden & Pet here, it’s free.
Best Q3: Clorox (NYSE:CLX)
Founded in 1913 with bleach as the sole product offering, Clorox (NYSE:CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.
Clorox reported revenues of $1.76 billion, up 27.1% year on year, outperforming analysts’ expectations by 7.6%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ organic revenue estimates.
Clorox delivered the biggest analyst estimates beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $157.71.
Is now the time to buy Clorox? Access our full analysis of the earnings results here, it’s free.
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 $156 million, up 11.1% year on year, exceeding analysts’ expectations by 4.6%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates and full-year EPS guidance missing analysts’ expectations.
WD-40 delivered the weakest full-year guidance update in the group. As expected, the stock is down 10.7% since the results and currently trades at $236.55.
Read our full analysis of WD-40’s results here.
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 $4.95 billion, down 3.5% year on year. This print missed analysts’ expectations by 1.9%. Overall, it was a slower quarter as it also logged a miss of analysts’ organic revenue estimates.
The stock is down 12.6% since reporting and currently trades at $126.12.
Read our full, actionable report on Kimberly-Clark 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 3.8% year on year. This number surpassed analysts’ expectations by 1%. More broadly, it was a satisfactory quarter as it also logged a solid beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
The stock is up 1.8% since reporting and currently trades at $101.67.
Read our full, actionable report on Church & Dwight here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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