As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer staples industry, including WD-40 (NASDAQ:WDFC) and its peers.
The consumer staples industry comprises companies engaged in the manufacturing, distribution, and sale of essential, everyday products. These products, also known as "staples," are fundamental to daily living and include packaged food, beverages and alcohol, personal care, and household products. Consumer staples stocks are considered defensive investments because consumers often purchase them regardless of economic conditions. To stand out, companies must have some combination of brand recognition, product quality, and price competitiveness.
The 11 consumer staples stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.9%.
In light of this news, share prices of the companies have held steady as they are up 1% on average since the latest earnings results.
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 $156.9 million, up 1.2% year on year. This print fell short of analysts’ expectations by 2.3%. Overall, it was a slower quarter for the company with full-year revenue guidance missing analysts’ expectations.
“Today we reported third quarter net sales of $156.9 million — a new record high for net sales in a quarter — reflecting a modest 1 percent year-over-year increase,” said Steve Brass, president and chief executive officer.
WD-40 delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 4.5% since reporting and currently trades at $215.30.
Is now the time to buy WD-40? Access our full analysis of the earnings results here, it’s free.
Best Q2: USANA (NYSE:USNA)
Going to market with a direct selling model rather than through traditional retailers, USANA Health Sciences (NYSE:USNA) manufactures and sells nutritional, personal care, and skincare products.
USANA reported revenues of $236 million, up 10.9% year on year, outperforming analysts’ expectations by 4.8%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
USANA scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 15.1% since reporting. It currently trades at $36.29.
Is now the time to buy USANA? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Conagra (NYSE:CAG)
Founded in 1919 as Nebraska Consolidated Mills in Omaha, Nebraska, Conagra Brands today (NYSE:CAG) boasts a diverse portfolio of packaged foods brands that includes everything from whipped cream to jarred pickles to frozen meals.
Conagra reported revenues of $2.78 billion, down 4.3% year on year, falling short of analysts’ expectations by 1.7%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
As expected, the stock is down 4.3% since the results and currently trades at $19.49.
Read our full analysis of Conagra’s results here.
Cal-Maine (NASDAQ:CALM)
Known for brands such as Egg-Land’s Best and Land O’ Lakes, Cal-Maine (NASDAQ:CALM) produces, packages, and distributes eggs.
Cal-Maine reported revenues of $1.10 billion, up 72.2% year on year. This print beat analysts’ expectations by 21.3%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ adjusted operating income estimates.
Cal-Maine delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 4.5% since reporting and currently trades at $109.70.
Read our full, actionable report on Cal-Maine here, it’s free.
McCormick (NYSE:MKC)
The classic red Heinz ketchup bottle’s competitor, McCormick (NYSE:MKC) sells food-flavoring products like condiments, spices, and seasoning mixes.
McCormick reported revenues of $1.66 billion, flat year on year. This number was in line with analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also produced a solid beat of analysts’ EBITDA estimates but a slight miss of analysts’ gross margin estimates.
The stock is down 1.4% since reporting and currently trades at $72.60.
Read our full, actionable report on McCormick here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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