Colgate-Palmolive Co. (NYSE:CL) , a global dealer in consumer goods, came out with third-quarter 2016 adjusted earnings of 73 cents per share, in line with the Zacks Consensus Estimate and up 1% year over year. Including one-time items, the company’s earnings of 78 cents per share were down 2.5% year over year.
For 2016, the company now projects adjusted earnings per share to remain flat year over year. However, GAAP earnings per share are expected to increase in the high double-digit range.
Earnings Estimate Revision: The Zacks Consensus Estimate for 2016 has been stable over the past 30 days. If we look at Colgate’s performance in the trailing four quarters (including the quarter under review), the company has outperformed the Zacks Consensus Estimate by an average of 0.71%.
Revenues: Colgate’s global sales declined 3.3% to $3,867 million during the quarter, as benefit from 3% rise in prices was more than offset by a 4% fall in volumes and 2.5% negative impact of from currency fluctuations. Quarterly revenues were also short of the Zacks Consensus Estimate of $3,932 million. Organic sales rose 4.5% during the quarter.
Despite tough macroeconomic environment and foreign currency headwinds, management anticipates robust organic sales growth in 2016 buoyed by new product pipeline across all categories and regions. However, net sales for 2016 are expected to decline in the low to mid-single-digit range, due to the persistence of currency headwinds.
Zacks Rank: Currently, Colgate carries a Zacks Rank #3 (Hold) which is subject to change based on the just released earnings results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Check back later for our full write up on Colgate’s earnings report!
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COLGATE PALMOLI (CL): Free Stock Analysis Report
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