Looking back on household products stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Clorox (NYSE:CLX) and its peers.
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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 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 3.3% since the latest earnings results.
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 $1.69 billion, down 15.3% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ organic revenue and EBITDA estimates.
"We achieved better-than-expected results across sales, margin and EPS in the second quarter due to our strong demand creation plans, which also supported our share growth. Our results underscore the resiliency of our portfolio as we continue to invest in our brands to deliver superior value to win with consumers at a time when they need it most," said Chair and CEO Linda Rendle.
Clorox delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 5.2% since reporting and currently trades at $151.50.
Is now the time to buy Clorox? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $656.4 million, up 3.5% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems content with the results as the stock is up 2% since reporting. It currently trades at $37.82.
Is now the time to buy Central Garden & Pet? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: 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 $4.94 billion, flat year on year, falling short of analysts’ expectations by 0.6%. It was a slower quarter as it posted a miss of analysts’ EBITDA and organic revenue estimates.
Colgate-Palmolive delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 4.3% since the results and currently trades at $87.
Read our full analysis of Colgate-Palmolive’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 $700.2 million, up 1.2% year on year. This result lagged analysts' expectations by 0.6%. Taking a step back, it was still a strong quarter as it logged a solid beat of analysts’ EBITDA estimates.
The stock is down 3.9% since reporting and currently trades at $79.62.
Read our full, actionable report on Spectrum Brands here, it’s free.
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 $21.88 billion, up 2.1% year on year. This number surpassed analysts’ expectations by 1.3%. Taking a step back, it was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates but gross margin in line with analysts’ estimates.
The stock is up 2.9% since reporting and currently trades at $166.49.
Read our full, actionable report on Procter & Gamble here, it’s free.
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