Based in New York, Colgate-Palmolive Company (CL) manufactures and sells consumer products. Valued at $80.82 billion by market cap, the company is focused on oral care, personal care, home care, and pet nutrition. It sells its products in more than 200 countries and territories under brands such as Colgate, Palmolive, elmex, hello, meridol, Sorriso, Tom’s of Maine, EltaMD, Filorga, Irish Spring, Lady Speed Stick, PCA SKIN, Protex, Sanex, Softsoap, Speed Stick, Ajax, Axion, Fabuloso, Murphy, Soupline, and Suavitel. The leader in oral hygiene is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Friday, Jul. 26.
Ahead of the event, analysts expect CL to report a profit of $0.87 per share on a diluted basis, up 13% from $0.77 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For fiscal 2024, analysts expect CL to report EPS of $3.54, up 9.6% from $3.23 in fiscal 2023.
CL stock has outperformed the S&P 500’s ($SPX) 16.2% gains on a YTD basis, with shares up 23.6% during this period. Similarly, it outshined the S&P 500 Cons Staples Sector SPDR’s (XLP) 8.8% gains over the same time frame.
CL’s overall performance can be attributed to its robust Q1 results and updated full-year 2024 guidance. On Apr. 26, CL reported its Q1 results. Its adjusted EPS increased 18% year-over-year to $0.86, beating the consensus estimates of $0.82. The company’s net sales rose 6.2% year-over-year to $5.07 billion, surpassing Wall Street estimates of $4.95 billion. Meanwhile, its organic sales jumped by 9.8%, driven by strong pricing and volume growth.
CL raised its 2024 net sales growth guidance from 2% to 5%, compared to the previous forecast of 1% to 4%. It raised organic sales growth guidance to 5% to 7% compared to the prior guidance of 3% to 5%. CL shares closed up more than 1% on the day the results were released and have been on an uptrend since then.
Analysts’ consensus opinion on CL stock is bullish, with a “Strong Buy” rating overall. Out of 19 analysts covering the stock, 13 advise a “Strong Buy” rating, two have a “Moderate Buy” rating, and four recommend a “Hold.” The average analyst price target for CL is $99.78, indicating only a 1.3% potential upside from the current levels.
On the date of publication, Dipanjan Banchur 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.
