Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Energizer (NYSE:ENR) and the best and worst performers in the household products industry.
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 3% 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 $662.9 million, flat year on year. This print fell short of analysts’ expectations by 1%. Overall, it was a slower quarter for the company with EPS guidance for next quarter missing analysts’ expectations.
"We are proud of our performance in the quarter, as our investments have enabled continued momentum in our top-line and the operating flexibility to effectively offset the impact from tariffs to our fiscal 2025 results." said Mark LaVigne, Chief Executive Officer.
Unsurprisingly, the stock is down 10.4% since reporting and currently trades at $23.19.
Read our full report on Energizer here, it’s free.
Best Q1: Colgate-Palmolive (NYSE:CL)
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 a solid beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue estimates.
Colgate-Palmolive delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 5.5% since reporting. It currently trades at $87.57.
Is now the time to buy Colgate-Palmolive? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $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.
Interestingly, the stock is up 5.1% since the results and currently trades at $65.
Read our full analysis of Spectrum Brands’s results here.
Reynolds (NASDAQ:REYN)
Best known for its aluminum foil, Reynolds (NASDAQ:REYN) is a household products company whose products focus on food storage, cooking, and waste.
Reynolds reported revenues of $818 million, down 1.8% year on year. This print was in line with analysts’ expectations. More broadly, it was a slower quarter as it recorded a miss of analysts’ gross margin and EBITDA estimates.
The stock is down 4.3% since reporting and currently trades at $22.68.
Read our full, actionable report on Reynolds here, it’s free.
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 number missed analysts’ expectations by 3.3%. It was a softer quarter as it also produced a miss of analysts’ adjusted operating income and organic revenue estimates.
Clorox had the slowest revenue growth among its peers. The stock is down 2.4% since reporting and currently trades at $135.00.
Read our full, actionable report on Clorox here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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