Church & Dwight, the New Jersey-based consumer products maker, is encountering obstacles in the current quarter, leading to a 6.4% decline in its shares, which now stand at $86.08. This translates to the company’s largest percentage decrease in approximately 15 months, and it currently holds the unenviable position of being the second worst performer in the S&P 500.
According to Chief Executive Matthew Farrell, Church & Dwight is expecting a fourth-quarter profit of either 60 cents per share or 63 cents per share on an adjusted basis. Unfortunately, this falls short of analysts’ expectations, as they predicted earnings of 72 cents per share measured both ways, according to FactSet.
The company attributes these challenges to a variety of factors, including a significant increase in marketing spending, higher incentive compensation, and a higher tax rate. These circumstances have contributed to lowered earnings guidance for the fourth quarter.
Nevertheless, Church & Dwight remains optimistic about its overall performance for the year. The company anticipates a sales growth of about 5% for the fourth quarter, which analysts estimate will amount to $1.52 billion, reflecting a 5.6% growth compared to the previous year’s fourth quarter.
Furthermore, Church & Dwight has raised its sales growth forecast for the full year from 8% to 9%. It also maintains its projection of approximately 5% organic sales growth throughout the year.
Despite the current challenges faced by Church & Dwight in Q4, the company is focused on navigating through the obstacles and continuing its positive growth trajectory.