We expect leading consumer products company,
Church & Dwight Co. Inc
) to beat expectations when it reports first-quarter fiscal 2013
results on May 2, 2013.
Why a Likely Positive Surprise?
Our proven model shows that Church & Dwight is likely to
beat earnings because it has the right combination of two key
Positive Zacks ESP:
Church & Dwight currently has an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +1.39%. This is because the Most Accurate Estimate stands at
73 cents, while the Zacks Consensus Estimate is pegged at 72
Zacks Rank #3 (Hold):
Note that stocks with Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings estimates. The
sell-rated stocks (Zacks Rank #4 and #5) should never be
considered going into an earnings announcement.
The combination of Church & Dwight's Zacks Rank #3 (Hold)
and +1.39% ESP makes us confident regarding a positive earnings
beat on May 2.
What is Driving the Better-than-Expected Earnings?
We remain optimistic on the company's ability to deliver sales
and earnings per share growth, given its continued emphasis on
innovation and marketing investments, cost containment efforts
along with its steady cash flow generation.
The company expects innovative product launches to continue
boosting organic sales in 2013, and anticipates organic growth to
be in the range of 3%-4%. Church & Dwight forecasts commodity
prices to remain stable and expects gross margin to rise by 25 -
50 basis points.
The positive trend is seen in the trailing four-quarter
average surprise of 7.3%.
Stocks that Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
Hertz Global Holdings, Inc
), Earnings ESP of +5.56% and a Zacks Rank #1 (Strong Buy)
J&J Snack Foods Corp.
), Earnings ESP of +9.84% and a Zacks Rank #2 (Buy)
), Earnings ESP of +14.29% and a Zacks Rank #3 (Hold).
AMAZON.COM INC (AMZN): Free Stock Analysis
CHURCH & DWIGHT (CHD): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
J&J SNACK FOODS (JJSF): Free Stock Analysis
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