As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at household products stocks, starting with Procter & Gamble (NYSE:PG).
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 decent Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 0.5% above.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data. Thankfully, household products stocks have been resilient with share prices up 5.1% on average since the latest earnings results.
Procter & Gamble (NYSE:PG) Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble (NYSE:PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.
Procter & Gamble reported revenues of $20.53 billion, flat year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ earnings estimates but a miss of analysts’ gross margin estimates.
“Fiscal year 2024 was another year of strong results for P&G,” said Jon Moeller, Chairman of the Board, President and Chief Executive Officer.
Unsurprisingly, the stock is down 1.3% since reporting and currently trades at $167.83.
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Best Q2: 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 $930 million, down 1.1% year on year, outperforming analysts’ expectations by 4.2%. It was a very strong quarter for the company with an impressive beat of analysts’ gross margin and organic revenue growth estimates.
The market seems happy with the results as the stock is up 5.5% since reporting. It currently trades at $30.15.
Weakest Q2: Kimberly-Clark (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 $5.03 billion, down 2% year on year, falling short of analysts’ expectations by 1.3%. It was a weaker quarter for the company with a miss of analysts’ organic revenue and gross margin estimates.
As expected, the stock is down 1.2% since the results and currently trades at $142.46.
Clorox (NYSE: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 $1.90 billion, down 5.7% year on year, falling short of analysts’ expectations by 2.4%. More broadly, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue growth and gross margin estimates.
Clorox had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is up 8.6% since reporting and currently trades at $145.55.
Colgate-Palmolive (NYSE:NYSE:CL) Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive (NYSE:CL) is a consumer products company that focuses on personal, household, and pet products.
Colgate-Palmolive reported revenues of $5.06 billion, up 4.9% year on year, surpassing analysts’ expectations by 1.1%. More broadly, it was a strong quarter for the company with an impressive beat of analysts’ organic revenue growth estimates and a narrow beat of analysts’ earnings estimates.
The stock is up 5.9% since reporting and currently trades at $102.16.
This content was originally published on Stock Story
