Valued at a market cap of $82.1 billion, Colgate-Palmolive Company (CL) manufactures and sells household, healthcare, and personal care products and is a global leader in the oral care hygiene market. The New York-based company also sells pet food products for dogs and cats through its subsidiary, Hill's Pet Nutrition. It is expected to announce its fiscal Q3 earnings results before the market opens on Friday, Oct. 25.
Ahead of this event, analysts expect the consumer products manufacturer to report a profit of $0.88 per share, up 2.3% from $0.86 per share in the year-ago quarter. The company has consistently beaten Wall Street's bottom-line estimates in the last four quarters. In Q2, the company topped the consensus estimates by 4.6%.
For fiscal 2024, analysts expect CL to report an EPS of $3.57, up 10.5% from $3.23 in fiscal 2023. Moreover, EPS is expected to increase 8.7% year-over-year to $3.88 in fiscal 2025.
Shares of CL have rallied 45.4% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 32.9% surge and the Consumer Staples Select Sector SPDR Fund’s (XLP) 21.9% return over the same period.
CL’s outperformance over the past year can be attributed to consistent product demand, better price realization, and significant margin expansion. As a prominent consumer stapler player, the company benefits from its strong brand image, customer confidence, and substantial purchasing and distribution power.
In addition, On Jul. 26, shares of Colgate-Palmolive closed up more than 3% after releasing its better-than-expected Q2 revenues of $5.1 billion and adjusted earnings of $0.91 per share. The results were driven by a 4.9% year-over-year increase in net sales with a 9% growth in organic sales, fueled by positive volume growth across all operating divisions. Its 18% growth in adjusted EPS from a year ago, driven by gross margin expansion, further enhanced investor confidence.
Analysts' consensus view on CL’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 23 analysts covering the stock, 12 recommend "Strong Buy," two suggest "Moderate Buy," eight indicate “Hold,” and one suggests a “Strong Sell” rating. This configuration is slightly less bullish than three months ago, with 13 analysts suggesting a "Strong Buy."
CL's average analyst price target is $107.71, indicating a 7.6% potential upside from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
