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Q3 Earnings Highlights: Kimberly-Clark (NYSE:KMB) Vs The Rest Of The Household Products Stocks

KMB Cover Image

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how household products stocks fared in Q3, starting with Kimberly-Clark (NYSE:KMB).

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 Q3. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 1.1% below.

In light of this news, share prices of the companies have held steady as they are up 2.5% on average since the latest earnings results.

Kimberly-Clark (NYSE:KMB)

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 $4.95 billion, down 3.5% year on year. This print fell short of analysts’ expectations by 1.9%. Overall, it was a slower quarter for the company with a miss of analysts’ organic revenue estimates.

"Our third quarter results reflect strong execution across the business as we transform our organization," said Kimberly-Clark Chairman and CEO, Mike Hsu.

Kimberly-Clark Total Revenue

Unsurprisingly, the stock is down 3.6% since reporting and currently trades at $139.20.

Is now the time to buy Kimberly-Clark? Access our full analysis of the earnings results here, it’s free.

Best Q3: 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 $1.76 billion, up 27.1% year on year, outperforming analysts’ expectations by 7.6%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA and organic revenue estimates.

Clorox Total Revenue

Clorox achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 6.9% since reporting. It currently trades at $167.35.

Is now the time to buy Clorox? Access our full analysis of the earnings results here, it’s free.

Slowest Q3: 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 $669.5 million, down 10.8% year on year, falling short of analysts’ expectations by 5.9%. It was a softer quarter as it posted full-year EPS guidance missing analysts’ expectations.

Central Garden & Pet delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 3.4% since the results and currently trades at $40.

Read our full analysis of Central Garden & Pet’s results here.

Church & Dwight (NYSE:CHD)

Best known for its Arm & Hammer baking soda, Church & Dwight (NYSE:CHD) is a household and personal care products company with a vast portfolio that spans laundry detergent to toothbrushes to hair removal creams.

Church & Dwight reported revenues of $1.51 billion, up 3.8% year on year. This print topped analysts’ expectations by 1%. Zooming out, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations.

The stock is up 10.5% since reporting and currently trades at $110.38.

Read our full, actionable report on Church & Dwight here, it’s free.

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 $5.03 billion, up 2.4% year on year. This number topped analysts’ expectations by 0.5%. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ organic revenue estimates but a slight miss of analysts’ EBITDA estimates.

The stock is down 2.9% since reporting and currently trades at $96.84.

Read our full, actionable report on Colgate-Palmolive 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, a quarter in November) have kept 2024 stock markets frothy, 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 Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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