Yahoo Finance Here's How Colgate (CL) is Poised Ahead of Q1 Earnings
Colgate-Palmolive Company CL is expected to have registered top-line growth in its first-quarter 2023 numbers on Apr 28, before the opening bell. The Zacks Consensus Estimate for first-quarter revenues is pegged at $4.6 billion, which indicates a rise of about 5% from the prior-year quarter’s reported figure.
The consensus estimate for the company’s earnings is pegged at 70 cents per share, suggesting a decline of 5.4% from the prior-year quarter’s reported figure. The consensus mark for earnings has been stable in the past 30 days.
We expect the company’s first-quarter net sales to increase 2.3% year over year to $4,502.2 million and the bottom line to decline 5.9% to 70 cents per share.
In the last reported quarter, the company reported break-even earnings. It has delivered an earnings surprise of 0.4%, on average, in the trailing four quarters.
Key Aspects to Note
The leading global consumer products company is expected to have gained from consumer demand for personal care and home care products. Colgate’s top line in the first quarter is likely to have benefited from innovation, brand strength, focus on premiumization and digital transformation. The company’s stringent pricing actions and accelerated revenue growth management plans are likely to have boosted the top line in the to-be-reported quarter.
Colgate has been focusing on the premiumization of its Oral Care portfolio through major innovations. Its premium innovation products, including CO. by Colgate, Colgate Elixir toothpaste and Colgate enzyme whitening toothpaste, have been performing well. This is expected to have boosted organic sales growth for its Oral Care business in the first quarter. We anticipate organic sales growth of 5.4% for the first quarter.
The company has been on track with its efforts to improve product availability through enhanced distribution to newer markets and channels. Colgate has been aggressively expanding into faster growth channels while extending the geographic footprint of its brands. It has also been focused on expanding the availability of its products through e-commerce channel, as more consumers have been using online services for their essential needs. Its Hill's business has been witnessing momentum, which is expected to have delivered sales growth in the first quarter. The company’s newly launched Prescription Diet Derm Complete has been gaining market share.
However, higher raw material and logistic costs worldwide have been concerning despite sales growth. Higher logistics costs have been due to volume and capacity constraints in the shipping and logistics industry, and higher e-commerce demand. Moreover, the company has been witnessing a deleverage in SG&A expenses, which have been weighing on margins. These costs and headwinds are likely to have hurt the bottom-line performance in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model conclusively predicts an earnings beat for Colgate this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Colgate-Palmolive Company Price and EPS Surprise
Colgate-Palmolive Company price-eps-surprise | Colgate-Palmolive Company Quote
Colgate currently has an Earnings ESP of +1.43% and a Zacks Rank of 2.
Other Stocks with Favorable Combination
Here are some other companies, which according to our model, also have the right combination of elements to deliver an earnings beat.
TreeHouse Foods THS has an Earnings ESP of +19.75% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register a top-line decrease when it reports first-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $849 million, which suggests a decline of 25.6% from the figure reported in the prior-year quarter.
The consensus estimate for TreeHouse’s quarterly earnings has moved up 5.4% in the past 30 days to 39 cents per share, suggesting growth of 360% from the year-ago quarter’s reported number. THS’ earnings beat the consensus mark in the trailing four quarters, delivering an earnings surprise of 48.8%, on average.
Sysco Corp. SYY currently has an Earnings ESP of +3.07% and a Zacks Rank of 3. The company is likely to register a top-line and bottom-line increase when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for SYY’s quarterly revenues is pegged at $18.7 billion, which suggests a jump of 10.8% from the figure reported in the prior-year quarter.
The consensus estimate for Sysco’s bottom line has been stable at 92 cents per share in the past 30 days. The consensus mark indicates a 29.6% improvement from the year-ago quarter’s figure. SYY has delivered an earnings beat of 7.1%, on average, in the trailing four quarters.
Clorox CLX currently has an Earnings ESP of +0.14% and a Zacks Rank of 3. CLX is anticipated to register top-line growth when it reports third-quarter fiscal 2023 results. The Zacks Consensus Estimate for Clorox’s quarterly revenues is pegged at $1.83 billion, indicating a rise of 0.9% from the figure reported in the prior-year quarter.
The consensus estimate for Clorox’s bottom line has been unchanged in the past 30 days at $1.23 per share. However, the consensus mark for CLX suggests a decline of 6.1% from the year-ago quarter’s reported figure. CLX has delivered an earnings beat of 27.8%, on average, in the trailing four quarters.
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Colgate-Palmolive Company (CL) : Free Stock Analysis Report
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TreeHouse Foods, Inc. (THS) : Free Stock Analysis Report
