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.
Will Robust Strategies Fuel Colgate's (CL) Q2 Earnings?
Read MoreHide Full Article
Colgate-Palmolive Company (CL - Free Report) is slated to report second-quarter 2018 results on Jul 27, before the market opens.
Colgate is popular among investors for its meet or beat earnings track record. The company posted in-line earnings in three of the last four quarters, with an average beat of 0.3%.
Colgate-Palmolive Company Price, Consensus and EPS Surprise
Let’s see how things are shaping up prior to this announcement.
What to Expect?
The question lingering in investors’ minds is whether this consumer goods giant will be able to deliver a positive earnings surprise in the second quarter like the first quarter of 2018. The Zacks Consensus Estimate for the impending quarter is pegged at 77 cents, which reflects year-over-year growth of 6.9%. However, estimates moved south by a penny in the last seven days. The Zacks Consensus Estimate for revenues is $3.97 billion, up 3.7% from the year-ago quarter.
Factors Likely to Influence 2Q18
Colgate is progressing well with its Global Growth and Efficiency Program, which focuses on reducing structural costs to improve gross and operating profits, standardizing processes to improve the decision-making procedure and increasing its market share worldwide. Also, the company is on track with the brand building and productivity maximization initiatives.
In addition to its solid brand portfolio, Colgate remains focused on innovation and in-store implementation to drive growth. This, in turn, has enabled it to capture market share across all regions and categories. With regards to innovation, the company is rolling out the Naturals range in various markets. All these endeavors are likely to boost the upcoming quarterly results.
For 2018, management projects net sales to increase in the mid-single-digit range and organic sales growth in low- to mid-single digit. Also, it anticipates low-double-digit earnings per share growth, on an adjusted basis.
However, Colgate has been witnessing strained margins due to higher raw material and packaging costs. Notably, the company reported second straight quarter of gross margin contraction and fourth consecutive quarter of operating margin decline in first-quarter 2018. Moreover, management expects the backdrop to remain challenging in 2018 due to uncertain global markets and slowing category growth worldwide.
Nevertheless, Colgate anticipates strong cash flow generation, gross margin expansion and higher advertising investments in the current year.
A Glance at Zacks Model
Our proven model does not conclusively show that Colgate is likely to beat earnings estimates in the second quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Colgate has an Earnings ESP of +0.07%. However, the company’s Zacks Rank #4 (Sell) makes surprise prediction difficult.
Stocks With Favorable Combination
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:
Dean Foods Company has an Earnings ESP of +10.35% and a Zacks Rank of 3.
Monster Beverage Corporation (MNST - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Will Robust Strategies Fuel Colgate's (CL) Q2 Earnings?
Colgate-Palmolive Company (CL - Free Report) is slated to report second-quarter 2018 results on Jul 27, before the market opens.
Colgate is popular among investors for its meet or beat earnings track record. The company posted in-line earnings in three of the last four quarters, with an average beat of 0.3%.
Colgate-Palmolive Company Price, Consensus and EPS Surprise
Colgate-Palmolive Company Price, Consensus and EPS Surprise | Colgate-Palmolive Company Quote
Let’s see how things are shaping up prior to this announcement.
What to Expect?
The question lingering in investors’ minds is whether this consumer goods giant will be able to deliver a positive earnings surprise in the second quarter like the first quarter of 2018. The Zacks Consensus Estimate for the impending quarter is pegged at 77 cents, which reflects year-over-year growth of 6.9%. However, estimates moved south by a penny in the last seven days. The Zacks Consensus Estimate for revenues is $3.97 billion, up 3.7% from the year-ago quarter.
Factors Likely to Influence 2Q18
Colgate is progressing well with its Global Growth and Efficiency Program, which focuses on reducing structural costs to improve gross and operating profits, standardizing processes to improve the decision-making procedure and increasing its market share worldwide. Also, the company is on track with the brand building and productivity maximization initiatives.
In addition to its solid brand portfolio, Colgate remains focused on innovation and in-store implementation to drive growth. This, in turn, has enabled it to capture market share across all regions and categories. With regards to innovation, the company is rolling out the Naturals range in various markets. All these endeavors are likely to boost the upcoming quarterly results.
For 2018, management projects net sales to increase in the mid-single-digit range and organic sales growth in low- to mid-single digit. Also, it anticipates low-double-digit earnings per share growth, on an adjusted basis.
However, Colgate has been witnessing strained margins due to higher raw material and packaging costs. Notably, the company reported second straight quarter of gross margin contraction and fourth consecutive quarter of operating margin decline in first-quarter 2018. Moreover, management expects the backdrop to remain challenging in 2018 due to uncertain global markets and slowing category growth worldwide.
Nevertheless, Colgate anticipates strong cash flow generation, gross margin expansion and higher advertising investments in the current year.
A Glance at Zacks Model
Our proven model does not conclusively show that Colgate is likely to beat earnings estimates in the second quarter. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Colgate has an Earnings ESP of +0.07%. However, the company’s Zacks Rank #4 (Sell) makes surprise prediction difficult.
Stocks With Favorable Combination
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:
The Boston Beer Company, Inc. (SAM - Free Report) has an Earnings ESP of +13.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dean Foods Company has an Earnings ESP of +10.35% and a Zacks Rank of 3.
Monster Beverage Corporation (MNST - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>