The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how household products stocks fared in Q1, starting with Church & Dwight (NYSE:CHD).
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.
While some household products stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.8% since the latest earnings results.
Best Q1: 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 $1.47 billion, down 2.4% year on year. This print fell short of analysts’ expectations by 2.9%. Overall, it was a slower quarter for the company with a miss of analysts’ organic revenue estimates and EPS guidance for next quarter missing analysts’ expectations.
Rick Dierker, Chief Executive Officer, commented, “In an environment of slowing consumption, our brands are performing well. We continue to drive both dollar and volume share gains across most of our brands. Our balanced portfolio of value and premium products keep us well positioned to navigate this environment.
Unsurprisingly, the stock is down 4.6% since reporting and currently trades at $94.60.
Read our full report on Church & Dwight here, it’s free.
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%. The business performed better than its peers, but it was unfortunately a disappointing quarter with a significant miss of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 8.5% since reporting. It currently trades at $67.08.
Is now the time to buy Spectrum Brands? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $1.67 billion, down 8% year on year, falling short of analysts’ expectations by 3.3%. It was a softer quarter as it posted a miss of analysts’ adjusted operating income estimates and a miss of analysts’ organic revenue estimates.
Clorox delivered the slowest revenue growth in the group. As expected, the stock is down 1% since the results and currently trades at $137.
Read our full analysis of Clorox’s results here.
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 $818 million, down 1.8% year on year. This print was in line with analysts’ expectations. More broadly, it was a slower quarter as it recorded a miss of analysts’ gross margin and EBITDA estimates.
The stock is down 2.7% since reporting and currently trades at $23.06.
Read our full, actionable report on Reynolds 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 $4.91 billion, down 3.1% year on year. This number topped analysts’ expectations by 0.6%. Aside from that, it was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue estimates.
Colgate-Palmolive achieved the biggest analyst estimates beat among its peers. The stock is down 5.2% since reporting and currently trades at $87.88.
Read our full, actionable report on Colgate-Palmolive 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.
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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