As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the household products industry, including Spectrum Brands (NYSE:SPB) and its peers.
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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was 1.2% above.
While some household products stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.3% since the latest earnings results.
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 $733.5 million, down 5.2% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a miss of analysts’ gross margin estimates.
Spectrum Brands delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 10% since reporting and currently trades at $58.55.
Is now the time to buy Spectrum Brands? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: Central Garden & Pet (NASDAQ:CENT)
Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQ:CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.
Central Garden & Pet reported revenues of $678.2 million, up 1.3% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $33.90.
Is now the time to buy Central Garden & Pet? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 $832.8 million, up 3.4% year on year, exceeding analysts’ expectations by 0.8%. Still, it was a softer quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ gross margin estimates.
As expected, the stock is down 22.6% since the results and currently trades at $18.45.
Read our full analysis of Energizer’s results here.
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 $22.39 billion, up 3% year on year. This result surpassed analysts’ expectations by 1%. It was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and a narrow beat of analysts’ revenue estimates.
The stock is down 3.6% since reporting and currently trades at $146.79.
Read our full, actionable report on Procter & Gamble here, it’s free for active Edge members.
Kimberly-Clark (NASDAQ: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 $4.15 billion, flat year on year. This print was in line with analysts’ expectations. Aside from that, it was a satisfactory quarter as it also logged a decent beat of analysts’ EBITDA estimates but gross margin in line with analysts’ estimates.
The stock is down 9% since reporting and currently trades at $106.19.
Read our full, actionable report on Kimberly-Clark here, it’s free for active Edge members.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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