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 Q2. Today, we are looking at household products stocks, starting with Energizer (NYSE: ENR).
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 mixed Q2. As a group, revenues missed analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 0.7% below.
In light of this news, share prices of the companies have held steady as they are up 2.9% on average since the latest earnings results.
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 $725.3 million, up 3.4% year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.
"Three years ago, we launched Project Momentum to restore margins, increase our operational agility, and invest in growth. Our performance this quarter illustrates the benefits of those efforts as we delivered organic top-line growth, strong gross margins and robust earnings. In addition, our business has been further strengthened by our qualification for production credits as a result of our investments and focus on US manufacturing capabilities." said Mark LaVigne, Chief Executive Officer.
Interestingly, the stock is up 28.3% since reporting and currently trades at $28.39.
Is now the time to buy Energizer? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $1.99 billion, up 4.5% year on year, outperforming analysts’ expectations by 3.3%. The business had a very strong quarter with a solid beat of analysts’ EBITDA and organic revenue estimates.
Clorox delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.3% since reporting. It currently trades at $122.49.
Is now the time to buy Clorox? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: 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 $699.6 million, down 10.2% year on year, falling short of analysts’ expectations by 5.5%. It was a disappointing quarter as it posted a significant miss of analysts’ organic revenue estimates and a significant miss of analysts’ EBITDA estimates.
Spectrum Brands delivered the slowest revenue growth in the group. Interestingly, the stock is up 3.4% since the results and currently trades at $54.73.
Read our full analysis of Spectrum Brands’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 $20.89 billion, up 1.7% year on year. This print was in line with analysts’ expectations. Aside from that, it was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates but a slight miss of analysts’ gross margin estimates.
The stock is flat since reporting and currently trades at $158.
Read our full, actionable report on Procter & Gamble here, it’s free.
WD-40 (NASDAQ: WDFC)
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 $156.9 million, up 1.2% year on year. This number came in 2.3% below analysts' expectations. Overall, it was a slower quarter as it also logged full-year revenue guidance missing analysts’ expectations and full-year EPS guidance missing analysts’ expectations.
The stock is down 5.2% since reporting and currently trades at $213.69.
Read our full, actionable report on WD-40 here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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