RBC Capital shared its outlook on Church & Dwight (NYSE:CHD) ahead of the upcoming Q1/23 earnings report, scheduled to be released on April 27.
The analysts expect Q1 organic sales growth of 1.6% (in line with the Street estimates) and EPS of $0.76 (vs. Street’s $0.77) and see a modest upside to numbers.
The analysts expect another quarter of household strength driven by the company’s value brands and an improving supply chain. They expect the company’s troubled spots to remain a drag but less than in previous quarters. On the flip side, the company’s recent acquisitions are doing very well (Hero/Therabrush).
The analysts expect a gross margin expansion of 10 bps in the quarter to 42.7%. The company expects gross margin inflection into expansion territory this quarter following the past 10 quarters of contraction.