Will Church & Dwight (CHD) Miss Q2 Earnings on Soft Demand? - Analyst Blog


Church & Dwight Co. Inc. ( CHD ) is slated to report its second-quarter 2014 results on Aug 1, 2014. Last quarter, it posted a positive surprise of 1.4%. Let us see how things are developing for this announcement.

Growth Factors This Quarter

Lower consumer spending, higher promotional activity and a stiff competition in the detergent sector are likely to mar the company's quarterly performance. However, launch of innovative products and cost containment efforts will cushion bottom-line results.

Earnings Whispers

Our proven model does not conclusively project Church & Dwight as likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here as you will see below.

Zacks ESP:   ESP for Church & Dwight is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at 61 cents.

Zacks Rank: Church & Dwight carries a Zacks Rank #3 which increases the predictive power of ESP. However, we need to have a positive ESP to be confident of an earnings surprise call. We caution against stocks with a Zacks Rank #4 and #5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows these to have the right combination of elements to post an earnings beat:  

Archer Daniels Midland Co. ( ADM ) Earnings ESP stands at +5.26% and it carries a Zacks Rank #2.

Colgate-Palmolive Co. ( CL ) with an Earnings ESP of +1.37% holds a Zacks Rank #2.

Newell Rubbermaid Inc. ( NWL ) has an Earnings ESP of +1.85% and a Zacks Rank #2.

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CHURCH & DWIGHT (CHD): Free Stock Analysis Report

NEWELL RUBBERMD (NWL): Free Stock Analysis Report

ARCHER DANIELS (ADM): Free Stock Analysis Report

COLGATE PALMOLI (CL): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: CHD , NWL , ADM , CL



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