Consumer products company Colgate-Palmolive (NYSE:CL) will be reporting results this Friday before market hours. Here’s what to look for.
Colgate-Palmolive beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $4.91 billion, down 3.1% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ EBITDA estimates but a miss of analysts’ organic revenue estimates.
Is Colgate-Palmolive a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Colgate-Palmolive’s revenue to be flat year on year at $5.03 billion, slowing from the 4.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.89 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 11 downward revisions over the last 30 days (we track 12 analysts). Colgate-Palmolive has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1% on average.
Looking at Colgate-Palmolive’s peers in the household products segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Procter & Gamble delivered year-on-year revenue growth of 1.7%, meeting analysts’ expectations, and WD-40 reported revenues up 1.2%, falling short of estimates by 2.3%. Procter & Gamble traded down 2.8% following the results while WD-40’s stock price was unchanged.
Read our full analysis of Procter & Gamble’s results here and WD-40’s results here.
Investors in the household products segment have had steady hands going into earnings, with share prices flat over the last month. Colgate-Palmolive is down 7.3% during the same time and is heading into earnings with an average analyst price target of $98.61 (compared to the current share price of $85.30).
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