Q3 Earnings Highs And Lows: Spectrum Brands (NYSE:SPB) Vs The Rest Of The Household Products Stocks

December 09, 2024 at 01:43 AM EST

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Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Spectrum Brands (NYSE: SPB) and its peers.

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 as they are up 1.3% on average since the latest earnings results.

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 $773.7 million, up 4.5% year on year. This print exceeded analysts’ expectations by 3.5%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EBITDA estimates.

“The team and I are proud of our fourth quarter and fiscal 2024 results. We exceeded our annual operating plans on virtually every metric and all of our businesses returned to growth in the second half of the year, in spite of the challenging economic and geopolitical conditions that are impacting consumer demand.” said David Maura, Chairman and Chief Executive Officer of Spectrum Brands.

Interestingly, the stock is up 1.1% since reporting and currently trades at $94.88.

Read our full report on Spectrum Brands 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 and organic revenue estimates.

Clorox delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 6.3% since reporting. It currently trades at $166.43.

Is now the time to buy Clorox? 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 and adjusted operating income estimates.

Central Garden & Pet delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 3.9% since the results and currently trades at $40.31.

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

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%. Zooming out, it was a satisfactory quarter as it also produced an impressive beat of analysts’ EBITDA estimates.

The stock is up 7.3% since reporting and currently trades at $107.21.

Read our full, actionable report on Church & Dwight here, it’s free.

Energizer (NYSE: ENR)

Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE: ENR) is one of the world's largest manufacturers of batteries.

Energizer reported revenues of $805.7 million, flat year on year. This print met analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded a narrow beat of analysts’ EBITDA estimates but a significant miss of analysts’ gross margin estimates.

The stock is up 8.8% since reporting and currently trades at $37.14.

Read our full, actionable report on Energizer here, it’s free.

Market Update

In response to the Fed's rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed's 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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