Church & Dwight Beats Analyst Estimates on EPS

Church & Dwight (NYS: CHD) reported earnings Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Church & Dwight beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved significantly.

Gross margins dropped, operating margins improved, net margins expanded.

Revenue details
Church & Dwight reported revenue of $701.0 million. The 11 analysts polled by S&P Capital IQ wanted to see a top line of $691.4 million. Sales were 11% higher than the prior-year quarter's $656.9 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.54. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.53 per share on the same basis. GAAP EPS of $0.44 for Q3 were 33% higher than the prior-year quarter's $0.33 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 43.3%, 170 basis points worse than the prior-year quarter. Operating margin was 16.1%, 340 basis points better than the prior-year quarter. Net margin was 8.7%, 150 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $694.0 million. On the bottom line, the average EPS estimate is $0.51.

Next year's average estimate for revenue is $2.71 billion. The average EPS estimate is $2.19.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 353 members rating the stock outperform and 16 members rating it underperform. Among 138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 give Church & Dwight a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Church & Dwight is hold, with an average price target of $45.77.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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