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Consumer products company Colgate-Palmolive (NYSE:CL) will be reporting earnings tomorrow before the bell. Here’s what to look for.
Colgate-Palmolive beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $5.06 billion, up 4.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ organic revenue growth estimates and a decent beat of analysts’ EBITDA 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 grow 1.9% year on year to $5.01 billion, slowing from the 10.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.
Heading into earnings, analysts covering the company have mixed opinions about the business, with revenue estimates seeing 4 upward and 5 downward revisions over the last 30 days. Colgate-Palmolive has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.
Looking at Colgate-Palmolive’s peers in the household products segment, some have already reported their Q3 results, giving us a hint as to what we can expect. WD-40 delivered year-on-year revenue growth of 11.1%, beating analysts’ expectations by 4.6%, and Procter & Gamble reported flat revenue, falling short of estimates by 1.1%. WD-40 traded down 5.1% following the results while Procter & Gamble was also down 1.6%.
Read our full analysis of WD-40’s results here and Procter & Gamble’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 4.6% during the same time and is heading into earnings with an average analyst price target of $107.47 (compared to the current share price of $98.98).
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