Church & Dwight, known for its popular consumer products including Arm & Hammer, has issued soft earnings guidance for the current quarter. The company’s profit outlook for Q4 is expected to be 60 cents a share, or 63 cents a share after adjustment. This falls short of analysts’ expectations of 72 cents a share, according to FactSet.
Increased Marketing Spending Anticipated
CEO Matthew Farrell stated that the company is planning to significantly increase its marketing spending during the quarter. Additionally, higher incentive compensation and an elevated tax rate are projected to impact Church & Dwight’s earnings performance.
Positive Sales Growth Expected
Despite the soft earnings guidance, Church & Dwight remains optimistic about its sales growth. The company anticipates approximately 5% sales growth for the fourth quarter. Analysts surveyed by FactSet had predicted $1.52 billion in sales, representing a 5.6% increase from the same period last year.
Upgraded Sales Growth Forecast
Church & Dwight has raised its sales growth forecast for the full year to 9%, up from the previous estimate of 8%. The company maintains that organic sales will continue to grow by approximately 5% for the year.
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