We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Should You Add Colgate Stock to Your Portfolio Post Q4 Earnings?
Read MoreHide Full Article
Colgate-Palmolive Company (CL - Free Report) delivered mixed results for fourth-quarter 2024. While the company's earnings exceeded the Zacks Consensus Estimate, its revenues fell short of expectations. Despite the earnings beat, investor sentiment remained cautious, leading to a 3.1% decline in the stock price since the company announced its results on Jan. 31.
Shares have also underperformed the broader industry’s growth of 0.3%, the Consumer Staples sector’s rise of 1.5% and the S&P 500’s rally of 0.3% in the same period.
CL Stock's Price Performance
Image Source: Zacks Investment Research
With Colgate-Palmolive’s earnings now in focus, investors must decide whether to buy more shares, retain positions, or reduce the exposure of the stock.
Highlighting CLX’s Q4 Results
Colgate is witnessing solid business momentum, which led to higher organic sales in fourth-quarter 2024. On an organic basis, the company’s sales advanced 4.3%, backed by a 2.5% increase in volume and a 1.8% improvement in pricing. Also, accelerated revenue-growth management plans have been aiding Colgate’s organic sales for a while now.
Colgate ended the quarter with organic sales growth, robust volume and pricing performance and gross profit margin expansion. The company projects organic sales growth within its long-term target range of 3-5%, factoring in the planned exit from private-label pet nutrition throughout 2025.
However, Colgate has been facing inflationary pressures and a challenging macroeconomic environment for quite some time. Rising raw material and packaging costs continue to weigh on the company's profitability. Additionally, foreign currency fluctuations are acting as significant headwinds, with the sales outlook for 2025 reflecting a mid-single-digit negative impact from unfavorable currency exchange rates.
Looking ahead, the management expects 2025 net sales to remain relatively flat, with a mid-single-digit negative impact from unfavorable currency exchange rates. On an adjusted (Base Business) basis, Colgate foresees gross profit margin expansion, with advertising investment expected to remain stable or increase slightly in both dollar terms and as a percentage of sales. The company also projects low to mid-single-digit growth in adjusted EPS for 2025.
How Consensus Estimates Stack Up for Colgate Post Q4 Earnings
Following the soft fourth quarter performance, the Zacks Consensus Estimate for CL’s EPS has seen downward revisions. In the past 30 days, analysts have decreased estimates for earnings for 2025 and 2026 by 1.8% to $3.76 and 3.1% to $4.05 per share, respectively. The estimates suggest year-over-year increases of 4.4% and 7.5%, respectively.
Analysts have lowered their estimates 4.3% to 89 cents per share for the first quarter of 2025, owing to slower growth and increased cost pressures.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Image Source: Zacks Investment Research
Why CL Remains a Compelling Stock for Investors
Colgate’s strategy of offering core and premium innovation, driving its advertising spend and scaling capabilities to boost brand strength and increase household penetration remains on track. It is also focused on the premiumization of its Oral Care portfolio through major innovations. Backed by premium innovation, products including CO. by Colgate, Colgate Elixir toothpaste and Colgate enzyme whitening toothpaste have been performing well.
Colgate has been gaining from continued strong pricing and the benefits of funding the growth and other productivity initiatives. The company has been implementing aggressive pricing for the last few quarters, which boosted margins in fourth-quarter 2024. In the fourth quarter of 2024, pricing improved 1.8% year over year in the reported quarter, backed by positive pricing across its few divisions.
The company is focused on investing in scaling its capabilities in key areas such as digital, data and analytics to enhance competitive advantages and drive profitability. Colgate’s strategy of offering core and premium innovation, driving its advertising spend and scaling capabilities to boost brand strength and increase household penetration remains on track.
Investment Opinion on CL Stock
Reflecting the soft Q4 performance and muted guidance for 2025 indicates that the CL stock lacks near-term growth potential. However, its long-term strategies provide a solid foundation for recovery. Current investors should retain their positions in CL stock, while new investors might wait for a more favorable entry point. Colgate currently carries a Zacks Rank #3 (Hold).
The consensus estimate for United Natural’s fiscal 2025 sales and earnings indicates growth of 0.3% and 442.9%, respectively, from the year-ago period’s reported figure.
TreeHouse Foods (THS - Free Report) , a private brand snacks and beverages company, presently has a Zacks Rank #2 (Buy). THS delivered a trailing four-quarter earnings surprise of 20.4%, on average.
The Zacks Consensus Estimate for TreeHouse Foods’ 2025 sales and earnings implies growth of 1.2% and 24.9%, respectively, from the year-ago period’s reported figure.
US Foods Holding (USFD - Free Report) , which engages in the marketing, sale and distribution of fresh, frozen, and dry food and non-food products, currently carries a Zacks Rank #2. USFD delivered a positive earnings surprise of 3.7% in the last reported quarter.
The consensus estimate for US Foods’ 2025 sales and earnings calls for growth of 5.1% and 22.1%, respectively, from the prior-year reported levels.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should You Add Colgate Stock to Your Portfolio Post Q4 Earnings?
Colgate-Palmolive Company (CL - Free Report) delivered mixed results for fourth-quarter 2024. While the company's earnings exceeded the Zacks Consensus Estimate, its revenues fell short of expectations. Despite the earnings beat, investor sentiment remained cautious, leading to a 3.1% decline in the stock price since the company announced its results on Jan. 31.
Shares have also underperformed the broader industry’s growth of 0.3%, the Consumer Staples sector’s rise of 1.5% and the S&P 500’s rally of 0.3% in the same period.
CL Stock's Price Performance
Image Source: Zacks Investment Research
With Colgate-Palmolive’s earnings now in focus, investors must decide whether to buy more shares, retain positions, or reduce the exposure of the stock.
Highlighting CLX’s Q4 Results
Colgate is witnessing solid business momentum, which led to higher organic sales in fourth-quarter 2024. On an organic basis, the company’s sales advanced 4.3%, backed by a 2.5% increase in volume and a 1.8% improvement in pricing. Also, accelerated revenue-growth management plans have been aiding Colgate’s organic sales for a while now.
Colgate ended the quarter with organic sales growth, robust volume and pricing performance and gross profit margin expansion. The company projects organic sales growth within its long-term target range of 3-5%, factoring in the planned exit from private-label pet nutrition throughout 2025.
However, Colgate has been facing inflationary pressures and a challenging macroeconomic environment for quite some time. Rising raw material and packaging costs continue to weigh on the company's profitability. Additionally, foreign currency fluctuations are acting as significant headwinds, with the sales outlook for 2025 reflecting a mid-single-digit negative impact from unfavorable currency exchange rates.
Looking ahead, the management expects 2025 net sales to remain relatively flat, with a mid-single-digit negative impact from unfavorable currency exchange rates. On an adjusted (Base Business) basis, Colgate foresees gross profit margin expansion, with advertising investment expected to remain stable or increase slightly in both dollar terms and as a percentage of sales. The company also projects low to mid-single-digit growth in adjusted EPS for 2025.
How Consensus Estimates Stack Up for Colgate Post Q4 Earnings
Following the soft fourth quarter performance, the Zacks Consensus Estimate for CL’s EPS has seen downward revisions. In the past 30 days, analysts have decreased estimates for earnings for 2025 and 2026 by 1.8% to $3.76 and 3.1% to $4.05 per share, respectively. The estimates suggest year-over-year increases of 4.4% and 7.5%, respectively.
Analysts have lowered their estimates 4.3% to 89 cents per share for the first quarter of 2025, owing to slower growth and increased cost pressures.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Image Source: Zacks Investment Research
Why CL Remains a Compelling Stock for Investors
Colgate’s strategy of offering core and premium innovation, driving its advertising spend and scaling capabilities to boost brand strength and increase household penetration remains on track. It is also focused on the premiumization of its Oral Care portfolio through major innovations. Backed by premium innovation, products including CO. by Colgate, Colgate Elixir toothpaste and Colgate enzyme whitening toothpaste have been performing well.
Colgate has been gaining from continued strong pricing and the benefits of funding the growth and other productivity initiatives. The company has been implementing aggressive pricing for the last few quarters, which boosted margins in fourth-quarter 2024. In the fourth quarter of 2024, pricing improved 1.8% year over year in the reported quarter, backed by positive pricing across its few divisions.
The company is focused on investing in scaling its capabilities in key areas such as digital, data and analytics to enhance competitive advantages and drive profitability. Colgate’s strategy of offering core and premium innovation, driving its advertising spend and scaling capabilities to boost brand strength and increase household penetration remains on track.
Investment Opinion on CL Stock
Reflecting the soft Q4 performance and muted guidance for 2025 indicates that the CL stock lacks near-term growth potential. However, its long-term strategies provide a solid foundation for recovery. Current investors should retain their positions in CL stock, while new investors might wait for a more favorable entry point. Colgate currently carries a Zacks Rank #3 (Hold).
Three Picks You Can't Miss
United Natural Foods, Inc. (UNFI - Free Report) currently sports a Zacks Rank of 1 (Strong Buy). UNFI delivered a trailing four-quarter earnings surprise of 553.1%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for United Natural’s fiscal 2025 sales and earnings indicates growth of 0.3% and 442.9%, respectively, from the year-ago period’s reported figure.
TreeHouse Foods (THS - Free Report) , a private brand snacks and beverages company, presently has a Zacks Rank #2 (Buy). THS delivered a trailing four-quarter earnings surprise of 20.4%, on average.
The Zacks Consensus Estimate for TreeHouse Foods’ 2025 sales and earnings implies growth of 1.2% and 24.9%, respectively, from the year-ago period’s reported figure.
US Foods Holding (USFD - Free Report) , which engages in the marketing, sale and distribution of fresh, frozen, and dry food and non-food products, currently carries a Zacks Rank #2. USFD delivered a positive earnings surprise of 3.7% in the last reported quarter.
The consensus estimate for US Foods’ 2025 sales and earnings calls for growth of 5.1% and 22.1%, respectively, from the prior-year reported levels.