Market News

Colgate-Palmolive Tops 4Q Estimates Driven By Strong Consumer Demand

Colgate-Palmolive reported better-than-expected 4Q results, reflecting strong consumer demand for its products amid the COVID-19 pandemic.

However, shares of the consumer products company fell 1.5% on Friday after it said that “we expect high levels of uncertainty as we lap the benefits from pantry loading and other impacts of the COVID-19 pandemic. We also expect volatility in raw material and logistics costs and foreign exchange.”

Colgate-Palmolive’s (CL) 4Q earnings of $0.77 per share increased 5% year-over-year and topped analysts’ expectations by a penny. Sales grew 7.5% to $4.32 billion year-over-year and came in above the Street’s forecasts of $4.14 billion.

The company said that it maintained its global leadership in the toothpaste and manual toothbrush category with a market share of 39.8% and 31.1%, respectively, year-to-date. (See CL stock analysis on TipRanks)

For fiscal 2021, Colgate-Palmolive projects net sales to increase between 4% and 7% year-over-year. It forecasts adjusted EPS to grow in the mid-to-high single-digit range.

Ahead of its earnings release, Stifel Nicolaus analyst Mark Astrachan downgraded the stock to Hold from Buy and lowered the price target to $83 (6.4% upside potential) from $88.

In a note to investors, Astrachan wrote, “We think only modest near-term EPS upside coupled with valuation in line with historical averages relative to staples peers limits meaningful share price outperformance from current levels.”

Colgate-Palmolive scores a Hold consensus rating based on 6 Holds, 3 Buys, and 2 Sells. The average analyst price target of $85.64 implies upside potential of about 9.8% to current levels. Shares have gained 5.7% over the past year.

Related News:
Church & Dwight’s 4Q Profit Tops Analysts’ Estimates; Street Sees 14% Upside
Roper Technologies Dips 7% On 1Q Profit Outlook Miss
FB Financial Ramps Up Dividend By 22%

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More