We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What Awaits Colgate (CL) in Q2 Earnings: Boom or Bust?
Read MoreHide Full Article
Colgate-Palmolive Co. (CL - Free Report) , a global dealer in consumer goods, is scheduled to report second-quarter 2016 results on Jul 29. In the last quarter, the company delivered in line earnings.
The company has a robust track record of either matching or outperforming our estimates. Colgate has delivered in line results in two of the trailing four quarters and outperformed estimates in one. However, the company has an average negative earnings surprise of 0.01% in the past four quarters. Let’s see how things are shaping up for this announcement.
New York City-based Colgate-Palmolive’s performance in the preceding quarter reflects its strength and leading market position. The company derives strength from its international brand recognition and innovative strategies. We believe that its continued focus on product innovation, along with globally recognized brands and presence in both developed and emerging economies, enables it to capture growth opportunities and boost profitability. Colgate anticipates robust organic sales growth in 2016, backed by new products across categories and geographical regions, which should translate into double-digit organic earnings per share growth.
However, the company continues to battle macroeconomic headwinds in various countries and lingering currency woes. Foreign currency exchange hurt the company’s revenue growth by 8% in first-quarter 2016 and is expected to have a negative effect on 2016 sales as well. Also, stiff competition remains a threat. Together, these factors make us slightly cautious of the upcoming results.
Earnings Whispers
Our proven model does not conclusively project Colgate as likely to beat estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. However, this is not the case here due to the following factors:
Zacks ESP: Earnings ESP for Colgate is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 69 cents.
Zacks Rank: Colgate carries a Zacks Rank #3 (Hold) which increases the predictive power of the ESP. However, a 0.00% ESP makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Bloomin' Brands Inc. (BLMN - Free Report) , scheduled to report earnings on Jul 29, has an Earnings ESP of +3.33% and a Zacks Rank #3.
Papa John's International Inc. (PZZA - Free Report) , expected to report earnings on Aug 2, has an Earnings ESP of +3.70% and a Zacks Rank #2 (Buy).
Jack in the Box Inc. (JACK - Free Report) , expected to report earnings on Aug 3, has an Earnings ESP of +1.15% and a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
What Awaits Colgate (CL) in Q2 Earnings: Boom or Bust?
Colgate-Palmolive Co. (CL - Free Report) , a global dealer in consumer goods, is scheduled to report second-quarter 2016 results on Jul 29. In the last quarter, the company delivered in line earnings.
The company has a robust track record of either matching or outperforming our estimates. Colgate has delivered in line results in two of the trailing four quarters and outperformed estimates in one. However, the company has an average negative earnings surprise of 0.01% in the past four quarters. Let’s see how things are shaping up for this announcement.
COLGATE PALMOLI Price and EPS Surprise
COLGATE PALMOLI Price and EPS Surprise | COLGATE PALMOLI Quote
Factors Influencing This Quarter
New York City-based Colgate-Palmolive’s performance in the preceding quarter reflects its strength and leading market position. The company derives strength from its international brand recognition and innovative strategies. We believe that its continued focus on product innovation, along with globally recognized brands and presence in both developed and emerging economies, enables it to capture growth opportunities and boost profitability. Colgate anticipates robust organic sales growth in 2016, backed by new products across categories and geographical regions, which should translate into double-digit organic earnings per share growth.
However, the company continues to battle macroeconomic headwinds in various countries and lingering currency woes. Foreign currency exchange hurt the company’s revenue growth by 8% in first-quarter 2016 and is expected to have a negative effect on 2016 sales as well. Also, stiff competition remains a threat. Together, these factors make us slightly cautious of the upcoming results.
Earnings Whispers
Our proven model does not conclusively project Colgate as likely to beat estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. However, this is not the case here due to the following factors:
Zacks ESP: Earnings ESP for Colgate is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 69 cents.
Zacks Rank: Colgate carries a Zacks Rank #3 (Hold) which increases the predictive power of the ESP. However, a 0.00% ESP makes surprise prediction difficult.
Meanwhile, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Bloomin' Brands Inc. (BLMN - Free Report) , scheduled to report earnings on Jul 29, has an Earnings ESP of +3.33% and a Zacks Rank #3.
Papa John's International Inc. (PZZA - Free Report) , expected to report earnings on Aug 2, has an Earnings ESP of +3.70% and a Zacks Rank #2 (Buy).
Jack in the Box Inc. (JACK - Free Report) , expected to report earnings on Aug 3, has an Earnings ESP of +1.15% and a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>