The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Procter & Gamble (NYSE:PG) and the rest of the household products stocks fared in Q3.
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 3.6% on average 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 $21.74 billion, flat year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with a decent beat of analysts’ EPS estimates but gross margin in line with analysts’ estimates.
“Our organic sales growth, earnings and cash results in the first quarter keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year,” said Jon Moeller, Chairman of the Board, President and Chief Executive Officer.
Interestingly, the stock is up 4.3% since reporting and currently trades at $179.60.
Is now the time to buy Procter & Gamble? Access our full analysis of the earnings results 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 a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ organic revenue estimates.
Clorox scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 6.4% since reporting. It currently trades at $166.60.
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 5.1% since the results and currently trades at $40.80.
Read our full analysis of Central Garden & Pet’s results here.
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 number beat analysts’ expectations by 3.5%. Aside from that, it was a mixed quarter as it also recorded an impressive beat of analysts’ organic revenue estimates but a significant miss of analysts’ EBITDA estimates.
The stock is flat since reporting and currently trades at $93.03.
Read our full, actionable report on Spectrum Brands 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 topped analysts’ expectations by 1%. Zooming out, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
The stock is up 11.4% since reporting and currently trades at $111.24.
Read our full, actionable report on Church & Dwight here, it’s free.
Market Update
As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the US Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain. Said differently, there's still much uncertainty around 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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