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Church & Dwight Declares Quarterly Dividend

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Price movement

Church & Dwight Company (CHD) has a market cap of $12.2 billion. It fell 0.71% to close at $47.25 per share on November 2, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.2%, 2.2%, and 12.6%, respectively, on the same day. CHD is trading 0.67% below its 20-day moving average, 1.7% below its 50-day moving average, and 0.19% below its 200-day moving average.

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Related ETF and peers

The Guggenheim S&P Equal Weight Consumer Staples ETF (RHS) invests 2.7% of its holdings in Church & Dwight. The ETF tracks an equal-weighted index of large-cap US consumer staples stocks drawn from the S&P 500. The YTD price movement of RHS was 4.0% on November 2.

The market caps of Church & Dwight’s competitors are as follows:

  • The Procter & Gamble Company (PG): $232.0 billion
  • Colgate-Palmolive (CL): $63.5 billion
  • The Clorox Company (CLX): $15.0 billion

CHD declared dividend

Church & Dwight declared a regular quarterly dividend of $0.18 per share on its common stock. The dividend will be paid on December 1, 2016, to shareholders of record at the close of business on November 16, 2016.

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Performance of Church & Dwight in 2Q16

Church & Dwight reported 2Q16 net sales of $877.4 million, a rise of 3.6% compared to net sales of $847.1 million in 2Q15. Sales of household products and personal care products rose 1.8% and 9.9%, respectively, in 2Q16 compared to 2Q15. The company’s gross profit margin and income from operations rose 5.6% and 23.2%, respectively, in 2Q16 compared to the prior-year period.

Its net income and EPS (earnings per share) rose to $111.6 million and $0.85, respectively, in 2Q16 compared to $73.7 million and $0.55, respectively, in 2Q15.

CHD’s cash and cash equivalents fell 36.1%, and its inventories rose 5.9% in 2Q16 compared to 4Q15. Its current ratio fell to 0.88x, and its debt-to-equity ratio rose to 1.14x in 2Q16 compared to a current ratio and a debt-to-equity ratio of 1.0x and 1.10x, respectively, in 4Q15.

Projections

Church & Dwight has made the following projections for fiscal 2016:

  • organic sales growth in the range of ~3% to 4% due to the introduction of new products in its core business
  • gross margin of ~1.1% due to lower commodity costs and greater distribution efficiencies
  • operating margin expansion of ~0.60%
  • adjusted EPS growth in the range of 8% to 9%

The company has made the following projections for fiscal 3Q16:

  • organic sales growth in the range of ~1% to 2%
  • reported EPS of $0.92

In the next article, we’ll discuss Skechers USA (SKX).

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