On Feb. 6, Church & Dwight
- Church & Dwight beat expectations for both revenues and earnings per share with a 12% increase in sales and a 13.1% increase in EPS, but organic sales growth was just 2%.
- Gross margins increased strongly, but didn't translate into expanding net margins.
- Operating cash flow and free cash flow declined year over year, but the company said in its earnings release that it expects to deliver strong free cash flow. This will be something to watch as 2007 unfolds.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
FY 2006 |
FY 2006 |
Change |
|
|---|---|---|---|---|
|
Sales |
$1,930,000 |
$1,945,661 |
$1,736,506 |
12.0% |
|
Net Profit |
-- |
$138,927 |
$122,906 |
13.0% |
|
EPS |
$2.02 |
$2.07 |
$1.83 |
13.1% |
|
Diluted Shares |
-- |
68,946 |
69,289 |
(0.5%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
FY 2006 |
FY 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
39.12% |
36.68% |
2.44 |
|
Operating Margin |
12.96% |
12.25% |
0.71 |
|
Net Margin |
7.14% |
7.08% |
0.06 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$110,476 |
$126,678 |
(12.8%) |
|
Accounts Rec. |
$231,403 |
$187,863 |
23.2% |
|
Inventory |
$194,900 |
$156,149 |
24.8% |
|
Liabilities |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
No data |
$145,444 |
N/A |
|
Long-Term Debt |
$792,925 |
$635,261 |
24.8% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
FY 2006 |
FY 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$186,000 |
$190,000 |
(2.1%) |
|
Capital Expenditures |
$47,600 |
$37,700 |
26.3% |
|
Free Cash Flow |
$138,400 |
$152,300 |
(9.1%) |
Find out why Fools always follow the money.
Related companies:
-
Procter & Gamble
(NYSE:PG) -
Colgate-Palmolive
(NYSE:CL) -
Clorox
(NYSE:CLX) -
Unilever
(NYSE:UL)
Related Foolishness:
- Foolish Fundamentals: Valuation
- Foolish Fundamentals: Return on Invested Capital
- Foolish Fundamentals: Inventory
- Foolish Fundamentals: The Cash Flow Statement
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Colgate-Palmolive is a Motley Fool Inside Value selection. Unilever is an Income Investor selection. Need new ideas for your money? Talk stocks with other investors and our analysts when you give our newsletters a try free for 30 days.
At the time of publication, Nathan Parmelee had no position in any of the companies mentioned. Fool rules are here.
