Stock Monitor: Ocean Bio-Chem Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 13, 2017 / Active-Investors free earnings report on Church & Dwight Co., Inc. (NYSE: CHD) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/'symbol=CHD. Church & Dwight reported its third quarter fiscal 2017 operating results on November 02, 2017. The maker of household and personal products outperformed top- and bottom-line expectations and provided guidance for the upcoming quarter and full year. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is currently working on the research report for Ocean Bio-Chem, Inc. (NASDAQ: OBCI), which also belongs to the Consumer Goods sector as the Company Church & Dwight. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Church & Dwight most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/'symbol=CHD
Earnings Highlights and Summary
For the quarter ended September 30, 2017, Church & Dwight's net sales grew 11.2% to $967.9 million compared to $870.7 million for Q3 2016. The Company's revenue numbers surpassed analysts' expectations of $936.2 million.
For Q3 2017, Church & Dwight's organic net sales grew 3.2% on a y-o-y basis, attributed to growth in the domestic business, continued expansion of the international business, and strong growth in the Specialty Products business. The Company noted that weather related hurricane disruptions impacted organic growth by approximately -20 basis points during the reported quarter.
During Q3 2017, Church & Dwight's gross margin decreased 10 basis points to 45.3%, primarily due to the increased promotion and coupon investments in the domestic business offset by volume and positive impact of acquisitions and divestitures.
For Q3 2017, Church & Dwight's marketing expense was $111.9 million, reflecting an increase of 14.0% on a y-o-y basis. The Company's marketing expense as a percentage of net sales increased 30 basis points to 11.6%. The Company's Income from Operations on a reported and adjusted basis was $198.7 million, or 20.5% of net sales, in Q3 2017.
Church & Dwight reported net income of $133.3 million, or $0.52 per diluted share, compared to net income of $124.0 million, or $0.47 per diluted share, in Q3 2016. The Company's adjusted earnings for the reported quarter was $0.49, excluding a tax benefit ($0.03) from a prior year's joint venture impairment charge versus Wall Street's estimates for earnings of $0.47 per share.
Church & Dwight's Segment Results
During Q3 2017, the Consumer Domestic segment's net sales grew 9.7% to $729.2 million compared to $664.8 million in Q3 2016. The Company's organic sales increased 2.2% due to higher volume offset by price attributable to higher promotional investments. Volume growth was strong as the business continued to support key new product launches with a significant increase in promotion and coupon support. Sales in non-measured channels continued to grow, especially online retail sales which increased approximately 70%.
For Q3 2017, the Consumer International segment's net sales advanced 21.7% to $162.8 million, driven by broad based household and personal care sales. Organic sales increased 6.2% due to higher volume offset by price as higher promotional investments offset favorable mix.
The Company's Specialty Products reported net sales of $75.9 million in Q3 2017, up 5.3% compared to sales of $72.1 million in Q3 2016. The Company's organic sales increased 7.5% due to higher volume and price, primarily in the animal productivity business.
Cash Matters
For the first nine months of 2017, Church & Dwight's net cash from operating activities was $424.1 million, a $70.9 million decrease from the prior year due to an increase in working capital, partially offset by higher cash earnings. The working capital increase was primarily driven by higher deferred and incentive compensation payments, higher inventories, and timing of accounts receivable factoring. The Company's capital expenditures for the first nine months were $20.9 million, a $7.2 million decrease from the prior year.
At September 30, 2017, Church & Dwight's cash on hand was $236.5 million, while total debt was $2,421.3 million.
On November 01, 2017, Church & Dwight's Board of Directors authorized a new stock repurchase program under which up to $500 million of the Company's common stock may be repurchased in the future to reduce the number of shares outstanding. The previously authorized share repurchase program has been terminated. Currently, Church & Dwight has approximately 250 million shares outstanding.
Outlook
For full year 2017, Church & Dwight is forecasting sales growth of approximately 7% and organic sales growth of approximately 2.5%. On a reported basis, the Company's earnings are expected to be $1.82 per share, which includes a $0.01 negative impact from the Brazil charge, $0.12 negative impact from the U.K. pension settlement, $0.03 positive impact from the joint venture tax benefit, and zero impact from current year acquisitions. Excluding these charges and tax benefit, Church & Dwight expect to achieve $1.92 per share, or 8.5% adjusted EPS growth. Church & Dwight's full year outlook for net cash from operating activities is approximately $650 million.
For the fourth quarter 2017, Church & Dwight is projecting sales growth of approximately 12% and organic sales growth of approximately 2.5%. The Company is estimating EPS of $0.50 in the upcoming quarter, reflecting a 19% increase on a y-o-y basis.
Stock Performance Snapshot
December 12, 2017 - At Tuesday's closing bell, Church & Dwight's stock was slightly up 0.90%, ending the trading session at $48.39.
Volume traded for the day: 1.96 million shares.
Stock performance in the last month - up 8.13%; past twelve-month period - up 8.81%; and year-to-date - up 9.50%
After yesterday's close, Church & Dwight's market cap was at $12.08 billion.
Price to Earnings (P/E) ratio was at 27.84.
The stock has a dividend yield of 1.57%.
The stock is part of the Consumer Goods sector, categorized under the Cleaning Products industry. This sector was flat at the end of the session.
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