Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Spectrum Brands (NYSE:SPB) and the best and worst performers in the household products industry.
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. Luckily, household products stocks have performed well with share prices up 10.3% on average since the latest earnings results.
Best Q2: 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 $779.4 million, up 6% year on year. This print exceeded analysts’ expectations by 3.8%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ operating margin and organic revenue growth estimates.
“We are pleased to report a strong third quarter of fiscal 2024, building off the operating momentum we drove in the first half of the year. Each business delivered reported and organic net sales growth, and year-to-date our net sales growth is now positive.“ said David Maura, Chairman and Chief Executive Officer of Spectrum Brands.
Interestingly, the stock is up 15% since reporting and currently trades at $94.19.
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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 $1.90 billion, down 5.7% year on year, falling short of analysts’ expectations by 2.4%. However, it was still a strong quarter for the company with an impressive beat of analysts’ organic revenue growth estimates.
The market seems happy with the results as the stock is up 22.9% since reporting. It currently trades at $164.82.
Weakest Q2: 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 $5.03 billion, down 2% year on year, falling short of analysts’ expectations by 1.3%. It was a slower quarter for the company with a miss of analysts’ organic revenue growth estimates.
Interestingly, the stock is up 2% since the results and currently trades at $147.03.
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, surpassing analysts’ expectations by 4.2%. Revenue aside, it was a strong quarter for the company with an impressive beat of analysts’ gross margin and organic revenue growth estimates.
Reynolds had the weakest full-year guidance update among its peers. The stock is up 13.7% since reporting and currently trades at $32.50.
WD-40 (NASDAQ:WDFC) Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ:WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.
WD-40 reported revenues of $155 million, up 9.4% year on year, surpassing analysts’ expectations by 6.3%. Revenue aside, it was a strong quarter for the company with full-year revenue guidance beating analysts’ expectations and a decent beat of analysts’ earnings estimates.
WD-40 achieved the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The stock is up 18.3% since reporting and currently trades at $260.10.
This content was originally published on Stock Story
