Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Procter & Gamble (NYSE: PG) and the best and worst performers in the household products industry.
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 slower Q1. As a group, revenues missed analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.2% since the latest earnings results.
Procter & Gamble (NYSE: PG)
Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble (NYSE: PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.
Procter & Gamble reported revenues of $19.78 billion, down 2.1% year on year. This print fell short of analysts’ expectations by 1.9%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ EBITDA estimates but full-year EPS guidance slightly missing analysts’ expectations.
Unsurprisingly, the stock is down 3.6% since reporting and currently trades at $159.75.
Is now the time to buy Procter & Gamble? Access our full analysis of the earnings results here, it’s free.
Best Q1: Colgate-Palmolive (NYSE: CL)
Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive (NYSE: CL) is a consumer products company that focuses on personal, household, and pet products.
Colgate-Palmolive reported revenues of $4.91 billion, down 3.1% year on year, outperforming analysts’ expectations by 0.6%. The business had a satisfactory quarter with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue estimates.
Colgate-Palmolive pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.2% since reporting. It currently trades at $88.84.
Is now the time to buy Colgate-Palmolive? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Spectrum Brands (NYSE: SPB)
A leader in multiple consumer product categories, Spectrum Brands (NYSE: SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.
Spectrum Brands reported revenues of $675.7 million, down 6% year on year, falling short of analysts’ expectations by 2.2%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 14.5% since the results and currently trades at $52.85.
Read our full analysis of Spectrum Brands’s results here.
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 $833.5 million, down 7.4% year on year. This number missed analysts’ expectations by 5.1%. It was a slower quarter as it also recorded full-year EPS guidance missing analysts’ expectations.
The stock is up 2.6% since reporting and currently trades at $35.36.
Read our full, actionable report on Central Garden & Pet here, it’s free.
Kimberly-Clark (NASDAQ: 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 $4.84 billion, down 6% year on year. This result lagged analysts' expectations by 1%. Overall, it was a slower quarter as it also logged a miss of analysts’ organic revenue estimates and adjusted operating income in line with analysts’ estimates.
The stock is down 8.7% since reporting and currently trades at $127.89.
Read our full, actionable report on Kimberly-Clark here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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