Q3 Earnings Recap: Clorox (NYSE:CLX) Tops Household Products Stocks

December 13, 2024 at 10:03 AM EST

CLX Cover Image

Let’s dig into the relative performance of Clorox (NYSE: CLX) 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.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

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. This print exceeded analysts’ expectations by 7.6%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA and organic revenue estimates.

"We achieved better-than-expected results this quarter and fully restored overall market share, enabling us to maintain our sales outlook and raise our gross margin and EPS outlook for the year," said Chair and CEO Linda Rendle.

Clorox pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 4.8% since reporting and currently trades at $163.88.

Is now the time to buy Clorox? Access our full analysis of the earnings results here, it’s free.

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 $5.03 billion, up 2.4% year on year, outperforming analysts’ expectations by 0.5%. The business performed better than its peers, but it was unfortunately a mixed quarter with a decent beat of analysts’ organic revenue estimates but a slight miss of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.7% since reporting. It currently trades at $93.10.

Is now the time to buy Colgate-Palmolive? Access our full analysis of the earnings results here, it’s free.

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, falling short of analysts’ expectations by 5.9%. It was a softer quarter as it posted a significant miss of analysts’ organic revenue estimates.

Central Garden & Pet delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 2.8% since the results and currently trades at $39.89.

Read our full analysis of Central Garden & Pet’s results here.

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 $21.74 billion, flat year on year. This print lagged analysts' expectations by 1.1%. Taking a step back, it was a mixed quarter as it also produced a decent beat of analysts’ EPS estimates but gross margin in line with analysts’ estimates.

The stock is down 1.2% since reporting and currently trades at $170.26.

Read our full, actionable report on Procter & Gamble here, it’s free.

Reynolds (NASDAQ: REYN)

Best known for its aluminum foil, Reynolds (NASDAQ: REYN) is a household products company whose products focus on food storage, cooking, and waste.

Reynolds reported revenues of $910 million, down 2.7% year on year. This result topped analysts’ expectations by 0.8%. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ organic revenue estimates but a miss of analysts’ gross margin estimates.

Reynolds achieved the highest full-year guidance raise among its peers. The stock is down 5.6% since reporting and currently trades at $27.87.

Read our full, actionable report on Reynolds 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), has 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 heading into 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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