2023-04-27 07:13:48 ET
Church & Dwight ( NYSE: CHD ) shares moved upward in premarket action on Thursday after the company topped Q1 estimates and hiked full-year guidance.
For the first quarter, an adjusted EPS report of $0.85 came in $0.08 above expectations. Meanwhile, a 10% jump in revenue to $1.43B outpaced analyst estimates by $80M. The company credited 5.7% in net pricing increases for driving sales as volume was essentially flat.
“Volume being flat in Q1 is an encouraging sign after declining volumes in the last six quarters. We expect volume to be positive for the full year 2023 and show positive trends in the second half of the year,” CEO Matthew Farrell commented. “Our domestic brands grew consumption in 12 of 17 categories in which we compete. The trade down to value laundry detergent continued as ARM & HAMMER liquid detergent experienced strong consumption growth and share gains in Q1.”
He added that gross margins expanded beyond the company’s prior expectation given the pricing increases. Margins are expected to continue expanding through the year given planned pricing actions and the normalization of some input costs.
Church & Dwight ( CHD ) hiked net sales guidance to a range of 6% to 7% as compared to a prior forecast of 3% to 4% growth. Adjusted EPS are expected to rise 2% to 4%, narrowed from a prior flat to 4% guide. For Q2, organic sales are expected to rise 7% and adjusted EPS of $0.78 per share are anticipated. The Street EPS consensus stands at $0.76.
Shares of Church & Dwight ( CHD ) rose about 1% shortly after the earnings announcement .
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Church & Dwight tops Q1 estimates as pricing actions promote revenue growth