Let's dig into the relative performance of Clorox (NYSE:CLX) and its peers as we unravel the now-completed Q1 household products earnings season.
Household products stocks are generally stable investments, as many of the industry's products are essential for a comfortable and functional living space. Recently, there's been a growing emphasis on eco-friendly and sustainable offerings, reflecting the evolving consumer preferences for environmentally conscious options. These trends can be double-edged swords that benefit companies who innovate quickly to take advantage of them and hurt companies that don't invest enough to meet consumers where they want to be with regards to trends.
The 10 household products stocks we track reported a solid Q1; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was in line with consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the household products stocks have fared somewhat better than others, they collectively declined, with share prices falling 0.9% on average since the previous earnings results.
Clorox (NYSE:CLX) Founded in 1913 with bleach as the sole product offering, Clorox (NYSE:CLX) today is a consumer products giant whose product portfolio spans everything from bleach to skincare to salad dressing to kitty litter.
Clorox reported revenues of $1.81 billion, down 5.3% year on year, falling short of analysts' expectations by 3%. It was a mixed quarter for the company: Clorox exceeded analysts' EPS expectations. Its full-year earnings guidance also exceeded Wall Street's estimates. On the other hand, its organic revenue unfortunately missed analysts' expectations and its operating margin missed Wall Street's estimates.
"During the quarter, we made significant progress on our long-term strategies to drive profitable growth while also continuing to recover from the cyberattack. We executed well against our IGNITE strategy by evolving our portfolio with the divestiture of the Argentina business, launching innovation, investing in our brands, and delivering another quarter of gross margin expansion," said Chair and CEO Linda Rendle.
Clorox delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is down 7% since the results and currently trades at $137.5.
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Best Q1: Spectrum Brands (NYSE:SPB) A leader in multiple consumer product categories, Spectrum Brands (NYSE:SPB) is a diversified company with a portfolio of trusted brands spanning home appliances, garden care, personal care, and pet care.
Spectrum Brands reported revenues of $718.5 million, down 1.5% year on year, outperforming analysts' expectations by 1.5%. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.
The stock is up 1.2% since the results and currently trades at $85.54.
Weakest Q1: Energizer (NYSE:ENR) Masterminds behind the viral Energizer Bunny mascot, Energizer (NYSE:ENR) is one of the world's largest manufacturers of batteries.
Energizer reported revenues of $663.3 million, down 3% year on year, falling short of analysts' expectations by 0.1%. It was a weak quarter for the company, with a miss of analysts' organic revenue growth estimates.
The stock is up 1.2% since the results and currently trades at $29.8.
Reynolds (NASDAQ:REYN) Best known for its aluminum foil, Reynolds (NASDAQ:REYN) is a household products company whose products focus on food storage, cooking, and waste.
Reynolds reported revenues of $833 million, down 4.7% year on year, surpassing analysts' expectations by 2.2%. It was a strong quarter for the company, with optimistic earnings guidance for the next quarter and an impressive beat of analysts' organic revenue growth estimates.
Reynolds pulled off the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is down 1.5% since the results and currently trades at $27.98.
Kimberly-Clark (NYSE:NYSE:KMB) Originally founded as a Wisconsin paper mill in 1872, Kimberly-Clark (NYSE:KMB) is now a household products powerhouse known for personal care and tissue products.
Kimberly-Clark reported revenues of $5.15 billion, down 0.9% year on year, surpassing analysts' expectations by 1.2%. It was a very strong quarter for the company, with an impressive beat of analysts' gross margin estimates.
The stock is up 8.1% since the results and currently trades at $139.35.
