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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 Q2, 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 decent Q2. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was 0.5% above.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts. Thankfully, household products stocks have been resilient with share prices up 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 $701.4 million, flat year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ earnings estimates but a miss of analysts’ organic revenue growth estimates.
"We are extremely pleased with our third quarter performance," said Mark LaVigne, Chief Executive Officer.
Interestingly, the stock is up 10.8% since reporting and currently trades at $32.40.
Read our full report on Energizer here, it’s free.
Best 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 $779.4 million, up 6% year on year, outperforming analysts’ expectations by 3.8%. It was a very strong quarter for the company with an impressive beat of analysts’ operating margin and organic revenue growth estimates.
The market seems happy with the results as the stock is up 15.2% since reporting. It currently trades at $94.32.