A Look Ahead: Colgate-Palmolive's Earnings Forecast
Colgate-Palmolive (NYSE:CL) is preparing to release its quarterly earnings on Friday, 2025-08-01. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Colgate-Palmolive to report an earnings per share (EPS) of $0.89.
Investors in Colgate-Palmolive are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Overview of Past Earnings
The company's EPS beat by $0.05 in the last quarter, leading to a 0.0% drop in the share price on the following day.
Here's a look at Colgate-Palmolive's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.86 | 0.89 | 0.88 | 0.87 |
| EPS Actual | 0.91 | 0.91 | 0.91 | 0.91 |
| Price Change % | 1.0% | -5.0% | -4.0% | 3.0% |
Stock Performance
Shares of Colgate-Palmolive were trading at $85.8 as of July 30. Over the last 52-week period, shares are down 17.42%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.
Analyst Views on Colgate-Palmolive
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Colgate-Palmolive.
The consensus rating for Colgate-Palmolive is Buy, derived from 3 analyst ratings. An average one-year price target of $97.33 implies a potential 13.44% upside.
Peer Ratings Overview
This comparison focuses on the analyst ratings and average 1-year price targets of Kimberly-Clark, Church & Dwight Co and Reynolds Consumer Prods, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Kimberly-Clark, with an average 1-year price target of $135.5, suggesting a potential 57.93% upside.
- Analysts currently favor an Neutral trajectory for Church & Dwight Co, with an average 1-year price target of $102.0, suggesting a potential 18.88% upside.
- Analysts currently favor an Neutral trajectory for Reynolds Consumer Prods, with an average 1-year price target of $23.0, suggesting a potential 73.19% downside.
Comprehensive Peer Analysis Summary
Within the peer analysis summary, vital metrics for Kimberly-Clark, Church & Dwight Co and Reynolds Consumer Prods are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Colgate-Palmolive | Buy | -3.04% | $2.99B | 240.00% |
| Kimberly-Clark | Neutral | -6.00% | $1.73B | 58.42% |
| Church & Dwight Co | Neutral | -2.41% | $659.60M | 4.94% |
| Reynolds Consumer Prods | Neutral | -1.80% | $189M | 1.45% |
Key Takeaway:
Colgate-Palmolive ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.
Unveiling the Story Behind Colgate-Palmolive
Since its founding in 1806, Colgate-Palmolive has grown to become a leading player in the household and personal care arena. In addition to its namesake oral care line (which accounts for north of 40% of its total sales), the firm manufactures shampoos, shower gels, deodorants, and homecare products that are sold in over 200 countries. International sales account for about 70% of its total business, including approximately 45% from emerging regions. It also owns specialty pet food maker Hill's (around one fifth of sales), which sells a majority of its products through veterinarians and specialty pet retailers.
Colgate-Palmolive: Financial Performance Dissected
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Decline in Revenue: Over the 3 months period, Colgate-Palmolive faced challenges, resulting in a decline of approximately -3.04% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 14.05%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Colgate-Palmolive's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 240.0% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.22%, the company showcases effective utilization of assets.
Debt Management: Colgate-Palmolive's debt-to-equity ratio surpasses industry norms, standing at 22.78. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Colgate-Palmolive visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
