As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at household products stocks, starting with Clorox (NYSE:CLX).
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 slower Q1. As a group, revenues missed analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.
While some household products stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4% since the latest earnings results.
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 $1.67 billion, down 8% year on year. This print fell short of analysts’ expectations by 3.3%. Overall, it was a softer quarter for the company with a miss of analysts’ adjusted operating income and organic revenue estimates.
"In the third quarter, heightened macroeconomic uncertainties drove changes in shopping behaviors, resulting in temporary category slowdowns and lower sales. We expect these slowdowns to persist in the fourth quarter, as reflected in our updated outlook," said Chair and CEO Linda Rendle.
Clorox delivered the slowest revenue growth of the whole group. The stock is down 8% since reporting and currently trades at $127.25.
Formed after the 1928 combination between toothpaste maker Colgate and soap maker Palmolive-Peet, Colgate-Palmolive (NYSE:CL) is a consumer products company that focuses on personal, household, and pet products.
Colgate-Palmolive reported revenues of $4.91 billion, down 3.1% year on year, outperforming analysts’ expectations by 0.6%. The business had a satisfactory quarter with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue estimates.
Colgate-Palmolive pulled off the biggest analyst estimates beat among its peers. The market seems unhappy with the results as the stock is down 1.9% since reporting. It currently trades at $90.97.
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 $675.7 million, down 6% year on year, falling short of analysts’ expectations by 2.2%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 9.2% since the results and currently trades at $56.12.
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 $146.1 million, up 5% year on year. This number missed analysts’ expectations by 5.4%. It was a slower quarter as it also logged a significant miss of analysts’ EBITDA estimates and full-year revenue guidance missing analysts’ expectations.
WD-40 pulled off the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is up 2.3% since reporting and currently trades at $243.26.
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 $4.84 billion, down 6% year on year. This print came in 1% below analysts' expectations. Overall, it was a slower quarter as it also produced a miss of analysts’ organic revenue estimates and adjusted operating income in line with analysts’ estimates.
The stock is down 5% since reporting and currently trades at $133.10.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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