Church & Dwight shares surge as Q3 results exceed expectations

Investing.com - Church & Dwight Co. (NYSE:CHD) shares jumped 6.9% on Friday after the consumer products company reported third-quarter earnings that significantly exceeded analyst expectations, driven by strong volume growth across its portfolio of brands.

The maker of ARM & HAMMER and TROJAN products reported adjusted earnings per share of $0.81, beating the analyst consensus of $0.74 by 9.5%. Revenue rose 5.0% to $1.59 billion, surpassing the consensus estimate of $1.53 billion.

Organic sales increased 3.4%, fueled by volume growth of 4.0%, partially offset by negative pricing and product mix of 0.6%. Compared to the same quarter last year, revenue grew by $75 million.

"In a challenging environment, we are pleased to deliver another quarter of strong results," said Rick Dierker, Chief Executive Officer. "We continue to drive both dollar and volume share gains across most of our brands. Our balanced portfolio of value and premium products and our relentless focus on innovation continue to position us well for the future."

The company’s domestic business grew 2.3% organically, with four of its eight power brands gaining market share. International sales showed robust growth of 7.7%, while the Specialty Products Division delivered 4.2% organic growth. E-commerce continued to gain importance, with global online sales representing 23% of total consumer sales in the quarter versus 21% last year.

Church & Dwight raised its full-year outlook, now expecting approximately 1.5% reported sales growth (up from previous guidance of 1.0%) and adjusted EPS of approximately $3.49 (previously $3.47). The company also increased its cash flow from operations forecast to approximately $1.2 billion, up from the previous estimate of $1.1 billion.

Marketing investment increased by 50 basis points versus the prior year to 12.8% of sales, supporting innovation and driving consumption across brands. The company continues to make progress with tariff mitigation, reducing the expected 2025 tariff impact to approximately $25 million from the previous estimate of $30 million.

"We remain agile and focused on profitably growing our market shares across our portfolio," Dierker added. "We are encouraged by growth within our categories, and we believe our brands will outpace category growth due to our steady investments in innovation and our brands."

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