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Colgate (CL) to Report Q4 Earnings: What's in the Offing?
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Colgate-Palmolive Company (CL - Free Report) is expected to have registered top-line growth in its fourth-quarter 2023 numbers on Jan 26 before the opening bell. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $4.9 billion, indicating a rise of about 5.5% from the prior-year quarter’s reported figure.
The consensus estimate for the company’s earnings is pegged at 85 cents per share, suggesting growth of 10.4% from the prior-year quarter’s reported figure. However, the Zacks Consensus Estimate for earnings per share (EPS) for the quarter has been stable in the past 30 days.
In the last reported quarter, the company's earnings of 86 cents beat the Zacks Consensus Estimate by 7.5%. It has delivered an earnings surprise of 3.6%, on average, in the trailing four quarters.
Key Aspects to Note
Colgate is anticipated to have benefited from solid consumer demand for personal care, hygiene and home care products. Colgate’s focus on innovation, premiumization and digital transformation and its brand strength are likely to have driven its performance in the fourth quarter. The company’s top line is also likely to have benefited from its effective pricing actions and accelerated revenue growth management plans. Solid momentum in the Hill's business is expected to have delivered sales growth in the second quarter. Strength in Hill's Prescription Diet and Hill's Science Diet has been aiding the segment’s sales.
The leading global consumer products company has been aggressively expanding into faster growth channels while extending the geographic footprint of its brands. The company’s efforts to improve product availability through enhanced distribution across existing and new markets are likely to have driven its top-line performance. Higher e-commerce demand for its products is also expected to have augmented its fourth-quarter sales.
Colgate’s focus on the premiumization of its Oral Care portfolio through major innovations has been proving beneficial. Of late, the performance of its premium innovation products, including CO. by Colgate, Colgate Elixir toothpaste and Colgate enzyme whitening toothpaste, has been impressive. This is expected to have boosted organic sales growth for its Oral Care business in the to-be-reported quarter. Our estimate for the company’s organic sales growth is pegged at 4.6% for the fourth quarter. We anticipate Colgate’s adjusted gross margin to expand year over year by 170 basis points in the quarter to be reported.
However, higher raw material and packaging material costs have been a concern despite sales growth. CL has been witnessing a deleverage in SG&A expenses, which have been denting margins. Higher costs and expenses are expected to have hurt the bottom line’s performance in the fourth quarter. Our model indicates about a 5.4% increase in SG&A expenses in the quarter on a year-over-year basis. Given the company’s substantial international operations, foreign-currency woes might have hurt the top line in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model 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 chances of an earnings beat.
Colgate has a Zacks Rank #2 and an Earnings ESP of +0.78%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some other companies that have the right combination of elements to post an earnings beat:
Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +20.14% and a Zacks Rank #2. The company’s top and the bottom line are expected to increase year over year when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Celsius Holdings’ quarterly revenues is pegged at $326.3 million, calling for growth of 83.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 16 cents, indicating an improvement from a penny reported in the year-ago quarter. CELH has an earnings surprise of 81.6% in the last reported quarter.
Coty (COTY - Free Report) currently has an Earnings ESP of +0.05% and a Zacks Rank #3. The company’s top lines are expected to increase year over year when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.7 billion, suggesting a rise of 9.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 19 cents, indicating a 13.6% decline from the year-ago period’s figure. COTY has a trailing four-quarter earnings surprise of 120.7%, on average.
Church & Dwight Co. (CHD - Free Report) currently has an Earnings ESP of +0.90% and a Zacks Rank #2. CHD is likely to register top-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.5 billion, suggesting growth of 5.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings is pegged at 64 cents per share, suggesting an increase of 3.2% from the year-ago quarter’s reported number. CHD delivered an earnings beat of 10.1%, on average, in the trailing four quarters.
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Colgate (CL) to Report Q4 Earnings: What's in the Offing?
Colgate-Palmolive Company (CL - Free Report) is expected to have registered top-line growth in its fourth-quarter 2023 numbers on Jan 26 before the opening bell. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $4.9 billion, indicating a rise of about 5.5% from the prior-year quarter’s reported figure.
The consensus estimate for the company’s earnings is pegged at 85 cents per share, suggesting growth of 10.4% from the prior-year quarter’s reported figure. However, the Zacks Consensus Estimate for earnings per share (EPS) for the quarter has been stable in the past 30 days.
In the last reported quarter, the company's earnings of 86 cents beat the Zacks Consensus Estimate by 7.5%. It has delivered an earnings surprise of 3.6%, on average, in the trailing four quarters.
Key Aspects to Note
Colgate is anticipated to have benefited from solid consumer demand for personal care, hygiene and home care products. Colgate’s focus on innovation, premiumization and digital transformation and its brand strength are likely to have driven its performance in the fourth quarter. The company’s top line is also likely to have benefited from its effective pricing actions and accelerated revenue growth management plans. Solid momentum in the Hill's business is expected to have delivered sales growth in the second quarter. Strength in Hill's Prescription Diet and Hill's Science Diet has been aiding the segment’s sales.
The leading global consumer products company has been aggressively expanding into faster growth channels while extending the geographic footprint of its brands. The company’s efforts to improve product availability through enhanced distribution across existing and new markets are likely to have driven its top-line performance. Higher e-commerce demand for its products is also expected to have augmented its fourth-quarter sales.
Colgate’s focus on the premiumization of its Oral Care portfolio through major innovations has been proving beneficial. Of late, the performance of its premium innovation products, including CO. by Colgate, Colgate Elixir toothpaste and Colgate enzyme whitening toothpaste, has been impressive. This is expected to have boosted organic sales growth for its Oral Care business in the to-be-reported quarter. Our estimate for the company’s organic sales growth is pegged at 4.6% for the fourth quarter. We anticipate Colgate’s adjusted gross margin to expand year over year by 170 basis points in the quarter to be reported.
However, higher raw material and packaging material costs have been a concern despite sales growth. CL has been witnessing a deleverage in SG&A expenses, which have been denting margins. Higher costs and expenses are expected to have hurt the bottom line’s performance in the fourth quarter. Our model indicates about a 5.4% increase in SG&A expenses in the quarter on a year-over-year basis. Given the company’s substantial international operations, foreign-currency woes might have hurt the top line in the to-be-reported quarter.
What the Zacks Model Unveils
Our proven model 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 chances of an earnings beat.
Colgate-Palmolive Company Price and EPS Surprise
Colgate-Palmolive Company price-eps-surprise | Colgate-Palmolive Company Quote
Colgate has a Zacks Rank #2 and an Earnings ESP of +0.78%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some other companies that have the right combination of elements to post an earnings beat:
Celsius Holdings, Inc. (CELH - Free Report) currently has an Earnings ESP of +20.14% and a Zacks Rank #2. The company’s top and the bottom line are expected to increase year over year when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for Celsius Holdings’ quarterly revenues is pegged at $326.3 million, calling for growth of 83.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 16 cents, indicating an improvement from a penny reported in the year-ago quarter. CELH has an earnings surprise of 81.6% in the last reported quarter.
Coty (COTY - Free Report) currently has an Earnings ESP of +0.05% and a Zacks Rank #3. The company’s top lines are expected to increase year over year when it reports fourth-quarter 2023 results. The Zacks Consensus Estimate for Coty’s quarterly revenues is pegged at $1.7 billion, suggesting a rise of 9.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for the quarterly EPS is pegged at 19 cents, indicating a 13.6% decline from the year-ago period’s figure. COTY has a trailing four-quarter earnings surprise of 120.7%, on average.
Church & Dwight Co. (CHD - Free Report) currently has an Earnings ESP of +0.90% and a Zacks Rank #2. CHD is likely to register top-line growth when it reports fourth-quarter 2023 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.5 billion, suggesting growth of 5.3% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Church & Dwight’s quarterly earnings is pegged at 64 cents per share, suggesting an increase of 3.2% from the year-ago quarter’s reported number. CHD delivered an earnings beat of 10.1%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.