12:15 PM EST, 02/03/2025 (MT Newswires) -- Church & Dwight ( CHD ) reported a "solid" Q4, though its 2025 guidance disappointed, causing a negative stock reaction, RBC Capital Markets said in a report Monday.

Despite the near-term outlook concerns, the brokerage remains cautiously optimistic about the company's long-term prospects, the report said, adding that, "[Church & Dwight ( CHD )] typically guides conservatively, and the underlying fundamentals of the business remain healthy with added reinvestments to fuel volume driven topline growth."

Five of the company's seven "power brands," which account for 70% of revenue and profit, saw increased market share during the quarter. The company is prioritizing international expansion, believing it has significant room to grow in overseas markets, and brands like Hero are now available in 40 countries and are expected to expand to 50 by 2025, RBC said.

The company's guidance shows slower growth, with Q1 sales expected to rise only 2%, below expectations despite strong January trends, as growth will be mainly volume-driven in a challenging consumer environment, the report said, adding that the company also faces ongoing challenges with its vitamin, mineral, and supplement, or VMS business, which has been underperforming.

After Q4 earnings, RBC lowered its fiscal-year 2025 estimates, with organic sales now projected to rise 3.3%, compared with 3.7% previously, due to lower expected gross margins and increased reinvestment, the report said.

RBC reiterated its sector perform rating on the company, with a price target of $105.

Price: 106.37, Change: +0.85, Percent Change: +0.81