Stock on pace for largest percentage decrease in 15 months

  • Church & Dwight shares down 6.4% on weak earnings guidance
  • Stock on pace for largest percentage decrease in 15 months
  • Company targeting fourth-quarter profit of 60 cents a share
  • Analysts expected earnings of 72 cents a share
  • Expecting significant increase in marketing spending
  • Sales growth forecasted at 5% for the fourth quarter
  • Full-year sales growth forecast raised to 9%

Church & Dwight shares declined 6.4% to $86.08 after the company provided soft earnings guidance for the fourth quarter. The stock, which had been up 6.6% for the year, is now on track for its largest percentage decrease in about 15 months and is the second worst performer in the S&P 500. The New Jersey-based household and personal care products maker expects fourth-quarter profit of 60 cents a share, or 63 cents a share on an adjusted basis, while analysts were anticipating earnings of 72 cents a share. CEO Matthew Farrell mentioned that the company anticipates a significant increase in marketing spending during the quarter, along with higher incentive compensation and a higher tax rate. Church & Dwight also projects sales growth of about 5% for the fourth quarter, slightly below analysts’ expectations of $1.52 billion, or 5.6% growth from the previous year’s fourth quarter. However, the company raised its full-year sales growth forecast to 9% from 8%, with organic sales expected to grow about 5% for the year.

Factuality Level: 7
Factuality Justification: The article provides specific information about Church & Dwight’s shares slipping and their soft earnings guidance for the current quarter. It also includes quotes from the Chief Executive and mentions analyst expectations. However, the article does not provide any sources for the information and does not provide a balanced perspective by including any potential positive factors or reasons for the company’s performance.
Noise Level: 3
Noise Justification: The article provides relevant information about Church & Dwight’s soft earnings guidance for the current quarter, including the reasons behind it and the company’s sales growth forecast. However, it lacks in-depth analysis, scientific rigor, and actionable insights. It also does not explore the consequences of the company’s decisions on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: Church & Dwight shares
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the financial performance and guidance of Church & Dwight, a household and personal care products maker. However, there is no mention of an extreme event or its impact.
Public Companies: Church & Dwight (unknown)
Key People: Matthew Farrell (Chief Executive)

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