Church & Dwight Co., Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Church & Dwight Co., Inc. (NYSE:CHD) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. The result was positive overall - although revenues of US$1.5b were in line with what the analysts predicted, Church & Dwight surprised by delivering a statutory profit of US$0.93 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Church & Dwight

Taking into account the latest results, the most recent consensus for Church & Dwight from 19 analysts is for revenues of US$6.13b in 2024. If met, it would imply a satisfactory 3.1% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 7.3% to US$3.42. Before this earnings report, the analysts had been forecasting revenues of US$6.13b and earnings per share (EPS) of US$3.42 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$106, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Church & Dwight at US$120 per share, while the most bearish prices it at US$67.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Church & Dwight shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Church & Dwight's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.2% growth on an annualised basis. This is compared to a historical growth rate of 6.9% over the past five years. Compare this to the 14 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.4% per year. Factoring in the forecast slowdown in growth, it looks like Church & Dwight is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Church & Dwight. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Church & Dwight going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Church & Dwight that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.