Q4 Earnings Highlights: Procter & Gamble (NYSE:PG) Vs The Rest Of The Household Products Stocks

As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the household products industry, including Procter & Gamble (NYSE:PG) 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 mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 1.8% above.

Luckily, household products stocks have performed well with share prices up 11.3% on average since the latest earnings results.

Procter & Gamble (NYSE:PG)

Founded by candle maker William Procter and soap maker James Gamble, Proctor & Gamble (NYSE:PG) is a consumer products behemoth whose product portfolio spans everything from facial tissues to laundry detergent to feminine care to men’s grooming.

Procter & Gamble reported revenues of $22.21 billion, up 1.5% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a solid beat of analysts’ EBITDA estimates but revenue in line with analysts’ estimates.

“Our results in the second quarter keep us on track to deliver within our fiscal year guidance ranges for organic sales growth, core EPS growth and adjusted free cash flow productivity in a challenging consumer and geopolitical environment,” said Shailesh Jejurikar, President and Chief Executive Officer.

Interestingly, the stock is up 14.3% since reporting and currently trades at $166.89.

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

Best Q4: 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 $677 million, down 3.3% year on year, outperforming analysts’ expectations by 1.2%. The business had a very strong quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

The market seems happy with the results as the stock is up 14.5% since reporting. It currently trades at $78.40.

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

Weakest Q4: WD-40 (NASDAQ:WDFC)

Short for “Water Displacement perfected on the 40th try”, WD-40 (NASDAQ:WDFC) is a renowned American consumer goods company known for its iconic and versatile spray, WD-40 Multi-Use Product.

WD-40 reported revenues of $154.4 million, flat year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ EBITDA estimates.

Interestingly, the stock is up 16% since the results and currently trades at $235.97.

Read our full analysis of WD-40’s results here.

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 $778.9 million, up 6.5% year on year. This result topped analysts’ expectations by 10%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.

Energizer delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 7.7% since reporting and currently trades at $21.59.

Read our full, actionable report on Energizer here, it’s free.

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 $1.03 billion, up 1.3% year on year. This print beat analysts’ expectations by 2.9%. Zooming out, it was a satisfactory quarter as it also produced a solid beat of analysts’ organic revenue estimates but a miss of analysts’ gross margin estimates.

The stock is up 13.8% since reporting and currently trades at $24.81.

Read our full, actionable report on Reynolds here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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