The chart below shows how CHD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CHD sees a -0.75% change in stock price 10 days leading up to the earnings, and a +0.86% change 10 days following the report. On the earnings day itself, the stock moves by +0.42%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Sales Growth Exceeds Outlook: Reported sales growth was 3.8%, exceeding the outlook of 2.5%.
Organic Sales Growth: Organic sales grew 4.3%, driven by a volume increase of 3.1%.
Gross Margin Improvement: Adjusted gross margin expanded by 60 basis points, reflecting improved productivity.
Earnings Per Share Beat: Adjusted EPS was $0.79, which was $0.12 higher than the $0.67 outlook, driven by higher-than-expected operating profit.
Operating Cash Flow Increase: Cash from operating activities was $864 million, an increase of almost $70 million driven by higher cash earnings.
Negative
Loss Due to Impairment: Reported a loss of $0.31 per share primarily due to non-cash asset impairment in the vitamin business.
Gummy Vitamin Sales Decline: The company experienced a decline in the gummy vitamin category, with a decrease of 0.3% in sales, indicating ongoing challenges in this segment.
Organic Sales Growth Slowdown: The U.S. business saw only 3.3% organic sales growth, which is lower than expected and reflects a slowdown in consumer demand.
Marketing Expense Increase: The marketing expense as a percentage of net sales increased to 12.3%, which is 80 basis points higher than the previous year, indicating rising costs without corresponding revenue growth.
Q4 Organic Revenue Outlook: The company anticipates a challenging Q4, with expectations of organic revenue growth around 4%, which is lower than previous forecasts.
Church & Dwight Co., Inc. (CHD) Q3 2024 Earnings Call Transcript
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