- Colgate-Palmolive’s adjusted Earnings Per Share (EPS) for the second quarter is $0.91, beating last year’s $0.77 and exceeding the estimate of $0.87.
- Net sales are $5.06 billion, showing a 4.9% increase year-over-year, and surpassing the estimate of $5.01 billion.
- Organic sales grew by 9%, exceeding the estimate of 7.79%.
- By region:
- North America: Organic sales rose by 2.5%, but fell short of the 3.48% estimate.
- Latin America: Organic sales surged by 18.8%, slightly below the 19.2% estimate.
- Asia Pacific: Organic sales increased by 5.1%, beating the 2.94% estimate.
- Hill’s unit reported organic sales growth of 6.1%, surpassing the 4.56% estimate.
- Overall, organic volume grew by 4.7%, significantly higher than the 1.54% estimate.
- By region:
- North America: Organic volume rose by 5.9%, well above the 2.51% estimate.
- Latin America: Organic volume went up by 5.5%, exceeding the 3.39% estimate.
- Asia Pacific: Organic volume increased by 3.4%, far exceeding the -0.79% estimate.
- Hill’s unit organic volume rose by 2.5%, beating the -0.44% estimate.
- Pricing increased by 4.2%, but fell short of the 6.12% estimate.
- By region:
- North America: Pricing decreased by 3.3%, missing the 1.22% estimate.
- Latin America: Pricing increased by 13.3%, but slightly behind the 15.8% estimate.
- Asia Pacific: Pricing rose by 1.7%, below the 3.17% estimate.
- Hill’s unit pricing increased by 3.7%, but did not reach the 5.52% estimate.
- The adjusted gross margin stands at 60.8%, up from last year’s 57.8%, and higher than the estimated 60%.
- Based on these results, the company updated its financial guidance for the full year 2024.
- Colgate-Palmolive highlighted the balance of accelerated volume growth and higher pricing as key drivers for the sales increase.
- Analyst ratings include 18 buys, 7 holds, and 2 sells.
Colgate Palmolive Co on Smartkarma
Analyst coverage of Colgate-Palmolive Co on Smartkarma has been positive, according to insights from Baptista Research. In their report titled “Colgate-Palmolive Company: What Is Its New Consumer Behavior Management Strategy? – Major Drivers,” the analysts highlight the company’s strong start to 2024. Colgate-Palmolive’s Q1 earnings showed balanced top-line growth, consistent earnings per share, and organic sales growth across all categories. Despite challenges like foreign exchange headwinds, the company achieved a 6% net sales growth, indicating resilience and strategic prowess.
Baptista Research‘s analysis continues in their report “Colgate-Palmolive: What Is Its New Approach To Market Expansion & Its New Pricing Strategy? – Major Drivers,” where they delve into the company’s performance in the fourth quarter of 2023. The report acknowledges Colgate-Palmolive’s focus on sustainable growth, margin rebuilding, and cash flow improvement amidst a challenging environment. While geopolitical unrest and industry shifts pose ongoing challenges, the analysts aim to provide insights on factors influencing the company’s valuation using a Discounted Cash Flow methodology. Overall, analyst coverage suggests a bullish sentiment towards Colgate-Palmolive Co’s strategies and performance.
A look at Colgate Palmolive Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Colgate-Palmolive Company, a global consumer products giant known for its wide range of household and personal care items, receives mixed reviews in its Smartkarma Smart Scores analysis. While the company shows strong momentum with a score of 4, indicating positive market trends and potentially strong future performance, other aspects such as value and resilience fall behind with scores of 2 each. The dividend and growth scores stand at a moderate 3, reflecting stable but not exceptional performance. Colgate-Palmolive remains a prominent player in the consumer products industry, offering popular items like toothpaste, shampoos, and pet nutrition products for global markets.
Looking ahead, Colgate-Palmolive Co’s outlook seems to be influenced by its robust momentum score offset by weaker scores in value and resilience. Investors may find the company’s growth and dividend potential to be steady but not exceptional. With its diverse portfolio of household and personal care products, Colgate-Palmolive Co remains a key player in the consumer goods market. The company’s ability to adapt to changing consumer preferences and market dynamics will be crucial in determining its long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
