Looking back on household products stocks’ Q2 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 mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 0.7% below.
In light of this news, share prices of the companies have held steady as they are up 2.9% on average since the latest earnings results.
Best Q2: 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 $1.99 billion, up 4.5% year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ organic revenue estimates.
"While we delivered strong margin expansion and adjusted EPS growth for the year, we did not meet our topline expectations in the back half. We continued to see rapidly shifting consumer behaviors and broader market volatility which we expect to continue," said Chair and CEO Linda Rendle.
Clorox scored the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 1.9% since reporting and currently trades at $123.
Is now the time to buy Clorox? Access our full analysis of the earnings results here, it’s free.
Energizer (NYSE:ENR)
Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE:ENR) is one of the world's largest manufacturers of batteries.
Energizer reported revenues of $725.3 million, up 3.4% year on year, outperforming analysts’ expectations by 3.1%. The business had a very strong quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.
The market seems happy with the results as the stock is up 24.5% since reporting. It currently trades at $27.55.
Is now the time to buy Energizer? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: 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 $699.6 million, down 10.2% year on year, falling short of analysts’ expectations by 5.5%. It was a disappointing quarter as it posted a significant miss of analysts’ organic revenue estimates and a significant miss of analysts’ EBITDA estimates.
Spectrum Brands delivered the slowest revenue growth in the group. Interestingly, the stock is up 7.7% since the results and currently trades at $57.03.
Read our full analysis of Spectrum Brands’s results here.
WD-40 (NASDAQ:WDFC)
Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ:WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.
WD-40 reported revenues of $156.9 million, up 1.2% year on year. This result came in 2.3% below analysts' expectations. Overall, it was a slower quarter as it also logged full-year revenue guidance missing analysts’ expectations and full-year EPS guidance missing analysts’ expectations.
The stock is down 2.2% since reporting and currently trades at $220.35.
Read our full, actionable report on WD-40 here, it’s free.
Church & Dwight (NYSE:CHD)
Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE:CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.
Church & Dwight reported revenues of $1.51 billion, flat year on year. This number beat analysts’ expectations by 1.6%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.
The stock is down 1.6% since reporting and currently trades at $92.25.
Read our full, actionable report on Church & Dwight here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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