Looking back on household products stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Central Garden & Pet (NASDAQ: CENT) and its peers.
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 2.6% since the latest earnings results.
Central Garden & Pet (NASDAQ: CENT)
Enhancing the lives of both pets and homeowners, Central Garden & Pet (NASDAQ: CENT) is a leading producer and distributor of essential products for pet care, lawn and garden maintenance, and pest control.
Central Garden & Pet reported revenues of $833.5 million, down 7.4% year on year. This print fell short of analysts’ expectations by 5.1%. Overall, it was a slower quarter for the company with full-year EPS guidance missing analysts’ expectations.
The stock is up 4.3% since reporting and currently trades at $35.95.
Read our full report on Central Garden & Pet 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 an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue estimates.
Colgate-Palmolive delivered the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $91.95.
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.
As expected, the stock is down 5.4% since the results and currently trades at $58.52.
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 number met analysts’ expectations. Zooming out, it was a slower quarter as it produced a miss of analysts’ gross margin estimates and a miss of analysts’ EBITDA estimates.
The stock is down 6.4% since reporting and currently trades at $22.19.
Read our full, actionable report on Reynolds here, it’s free.
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 result lagged analysts' expectations by 1%. Overall, it was a slower quarter as it also recorded EPS guidance for next quarter missing analysts’ expectations.
The stock is down 11.7% since reporting and currently trades at $22.86.
Read our full, actionable report on Energizer here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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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