Church & Dwight Jumps 7% on 2Q Earnings; Analyst Sees More Upside Ahead


Shares of Church & Dwight (CHD) soared nearly 7% on Friday, thanks to its better-than-expected 2Q earnings and upbeat guidance. It’s adjusted EPS increased by 35.1% to $0.77 year-over-year and beat analysts’ estimates of $0.63.

Revenues grew 10.6% to $1.19 billion year-over-year and surpassed Street estimates of $1.15 billion. Robust demand for household and personal care products amid the COVID-19 pandemic supported its 2Q sales.

Buoyed by strong quarterly results, the company raised its 2020 adjusted EPS growth outlook to 13% from the previous projection of a 7%-9% increase. CHD’s anticipated revenue growth guidance range of 9%-10% also exceeded Street estimates of an 8% increase.

Oppenheimer analyst Rupesh Parikh raised the price target on the stock to $105 (9% upside potential) from $100 and reiterated a Buy rating. Parikh said, “We still see double-digit upside from here, even following the recent rally. Broad-based organic sales momentum coupled with defensive characteristics of the CHD model continue to setup shares for further outperformance, in our view”

Overall, CHD has a Moderate Buy analyst consensus. The average analyst price target stands at $92.20, implying 4.3% downside potential. (See CHD stock analysis on TipRanks).

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