Church & Dwight Q3 Earnings Top Estimates

Church & Dwight Co Inc CHD reported third-quarter FY22 sales growth of 0.4% year-on-year to $1.32 billion, beating the consensus of $1.30 billion.
Organic sales fell 0.7% due to a volume decline of 8.5%, partially offset by positive pricing of 7.8%.
Net sales from Consumer Domestic increased 1.2% Y/Y, Consumer International fell 3.2%, and Specialty Products grew 1%.
The gross margin compressed 250 basis points Y/Y to 41.7% due to higher raw material, manufacturing, and distribution costs, as well as higher promotional spending.
The operating margin contracted from 23% to 19.3%, and operating income for the quarter fell 15.8% to $253.9 million.
The company held $437.6 million in cash and equivalents as of September 30, 2022. Net cash provided by operating activities for nine months totaled $534.1 million.
Adjusted EPS of $0.76 beat the analyst consensus of $0.65.
Outlook: Church & Dwight sees FY22 net sales growth of 3% (previously 2% - 4%). Organic sales growth of 1%.
The lowered FY22 adjusted EPS guidance to $2.93 – $2.97 (prior outlook was $2.97) versus the estimate of $2.97.
It sees Q4 adjusted EPS of $0.58 - $0.62 versus the consensus of $0.72.
Price Action: CHD shares are trading lower by 0.39% at $76.21 on the last check Friday.

Momentum64.26

Growth48.77

Quality63.94

Value17.43

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