Colgate-Palmolive (NYSE:CL) Posts Earnings Results, Beats Estimates By $0.04 EPS

Colgate-Palmolive (NYSE:CL) issued its quarterly earnings results on Friday. The company reported $0.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.04, FiscalAI reports. Colgate-Palmolive had a return on equity of 386.76% and a net margin of 10.04%.The firm had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.36 billion. During the same quarter in the previous year, the firm posted $0.92 EPS. The firm’s revenue for the quarter was up 4.9% on a year-over-year basis.

Here are the key takeaways from Colgate-Palmolive’s conference call:

• Broad-based second-quarter performance: Colgate-Palmolive reported organic sales growth in four of five divisions and three of four categories, with base-business EPS ahead of expectations, free cash flow up 18%, and $1.4 billion returned to shareholders.
• Emerging markets, Europe, and Hill’s led growth. Hill’s organic sales increased 4% excluding discontinued private-label business and continued to gain share despite a largely flat pet-care category, while Latin America delivered balanced pricing and volume growth.
• U.S. performance remains a concern. Category softness, heightened competition, retailer inventory reductions, and select pricing gaps contributed to weakness; management plans increased advertising, innovation, and targeted promotional actions in the second half, but cautioned that improvement will not be linear.
• Management raised full-year gross-margin expectations to roughly flat, supported by revenue-growth management, productivity, mix, and pricing, while warning that raw-material costs and tariffs are expected to be higher in the second half. Organic sales guidance was not increased because of continued volatility in consumer demand, oil prices, geopolitical conditions, and North American categories.
• Hill’s is rolling out its fresh, single-protein pet-food offering gradually through veterinary, specialty, and neighborhood vet channels, prioritizing professional endorsement, product quality, and long-term brand building over near-term volume; Colgate also expects expanding AI, digital, and data capabilities to improve productivity and marketing effectiveness.

Colgate-Palmolive Price Performance

Colgate-Palmolive stock opened at $91.29 on Friday. The firm’s 50-day moving average is $90.97 and its two-hundred day moving average is $89.44. The company has a debt-to-equity ratio of 16.33, a current ratio of 1.02 and a quick ratio of 0.67. The stock has a market capitalization of $73.05 billion, a P/E ratio of 35.52, a P/E/G ratio of 4.82 and a beta of 0.33. Colgate-Palmolive has a 12-month low of $74.54 and a 12-month high of $99.33.

Colgate-Palmolive Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Monday, July 20th will be paid a dividend of $0.53 per share. This represents a $2.12 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Monday, July 20th. Colgate-Palmolive’s dividend payout ratio (DPR) is currently 82.49%.

Key Colgate-Palmolive News

Here are the key news stories impacting Colgate-Palmolive this week:

• Positive Sentiment: Second-quarter adjusted/base-business EPS was $0.99, exceeding the $0.95 consensus estimate and rising from $0.92 a year earlier. Revenue increased 4.9% year over year to $5.36 billion, in line with expectations. Colgate-Palmolive Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved, with GAAP and base-business gross margins expanding 140 basis points to 61.5%. Productivity gains and organic sales growth helped offset increased brand investment, while Latin America led regional growth and toothpaste maintained its global leadership. Colgate Q2 Earnings Beat Estimates on Strong Margins
• Neutral Sentiment: Management reaffirmed its full-year sales forecast, with expected revenue of approximately $20.8 billion to $21.6 billion. Maintaining guidance supports stability, but the range signals limited visibility in a choppy consumer environment. Colgate-Palmolive Reaffirms Annual Sales Forecast
• Negative Sentiment: North American demand remained muted, creating concern that the company’s strongest international performance may not fully offset weakness in its largest developed market. Investors also focused on management’s warning that new tariffs could outweigh a recent refund benefit, potentially pressuring future earnings. Colgate Warns New Tariffs Will Outweigh Recent Refund Windfall
• Negative Sentiment: GAAP EPS declined 5% to $0.86 despite the adjusted earnings beat, and organic sales growth was only 2.4%. The combination of slower underlying growth, domestic weakness and tariff risk is outweighing the quarter’s positive margin and earnings performance.

Institutional Trading of Colgate-Palmolive

Hedge funds and other institutional investors have recently bought and sold shares of the company. Kemnay Advisory Services Inc. acquired a new position in Colgate-Palmolive in the fourth quarter valued at $25,000. Triumph Capital Management boosted its stake in Colgate-Palmolive by 62.9% in the 4th quarter. Triumph Capital Management now owns 329 shares of the company’s stock worth $26,000 after buying an additional 127 shares during the last quarter. Jessup Wealth Management Inc purchased a new stake in Colgate-Palmolive in the 4th quarter valued at about $26,000. Motiv8 Investments LLC acquired a new position in shares of Colgate-Palmolive during the 4th quarter valued at about $27,000. Finally, Kelleher Financial Advisors acquired a new position in shares of Colgate-Palmolive during the 3rd quarter valued at about $35,000. 80.41% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

CL has been the topic of several analyst reports. Morgan Stanley reaffirmed an “overweight” rating on shares of Colgate-Palmolive in a report on Monday, May 4th. The Goldman Sachs Group restated a “buy” rating on shares of Colgate-Palmolive in a research report on Friday, May 1st. UBS Group boosted their target price on Colgate-Palmolive from $100.00 to $106.00 and gave the stock a “buy” rating in a research report on Thursday, July 16th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $99.00 target price on shares of Colgate-Palmolive in a research note on Monday, May 4th. Finally, Piper Sandler raised their price target on Colgate-Palmolive from $92.00 to $96.00 and gave the company an “overweight” rating in a report on Thursday, July 9th. Twelve investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, Colgate-Palmolive presently has an average rating of “Moderate Buy” and an average price target of $97.82.

Colgate-Palmolive Company Profile

Colgate-Palmolive Company is a global consumer products company with a long history in household and personal care categories. The business traces its roots to the early 19th century and has evolved into a multinational manufacturer and marketer of everyday consumer goods focused on health, hygiene and home care.

The company’s core activities center on oral care, personal care, home care and pet nutrition. Its product portfolio includes toothpaste, toothbrushes and mouthwash in oral care; soaps, body washes and deodorants in personal care; dishwashing liquids, surface cleaners and other household products in home care; and scientifically formulated pet foods under its pet nutrition business.