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.
Is Colgate (CL) Poised to Beat Earnings Estimates in Q2?
Read MoreHide Full Article
Colgate-Palmolive Company (CL - Free Report) is slated to release second-quarter 2020 results on Jul 31, before the opening bell. In the last-reported quarter, this global consumer products company delivered an earnings beat of 2.7%. Moreover, the company recorded an earnings surprise of 0.7%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for Colgate’s second-quarter earnings is pegged at 70 cents per share, suggesting a decline of 2.8% from the year-ago quarter. The consensus estimate has remained unchanged in the past 30 days. For second-quarter revenues, the consensus mark is pegged at $3.8 billion, suggesting a 1.8% decline from the prior-year reported figure.
Factors to Note
Colgate’s increased investment in brands, favorable pricing strategy, innovative product launches and enhancement of e-commerce capabilities have been contributing to the top line, even amid the coronavirus pandemic. We expect strong volume growth and robust pricing, which aided its top line across most regions in the first quarter, to bolster sales in the to-be-reported quarter.
Further, it has been benefiting from innovation and in-store implementation, which have been the guiding principles of its growth strategy. Also, the company remains focused on expanding the availability of its products through enhanced distribution to newer markets and channels, which is likely to help improve its organic sales performance. These factors are likely to have aided the company’s top line in the second quarter.
It increased focus on the platform as more consumers are using online services for essential needs, given the COVID-19 outbreak. This helped the e-commerce business grow more than 50% in the first quarter. We note that the company has been expanding the availability of its products through the e-commerce offerings with the launch of Hill’s to home, which enables pet parents to purchase prescription diet products directly from their veterinarian with home delivery option. All these actions are likely to have fueled sales in the to-be-reported quarter.
In spite of these tailwinds, concerns related to higher selling, general and administrative expenses, unfavorable currency fluctuations and stiff competition cannot be ignored. Moreover, any escalation in raw and packaging-material expenses might have impacted margins to an extent.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Colgate has a Zacks Rank #3 and an Earnings ESP of +0.81%.
Other Stocks With a Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
The Clorox Company (CLX - Free Report) presently has an Earnings ESP of +0.59% and a Zacks Rank #2.
The Estee Lauder Companies Inc. (EL - Free Report) has an Earnings ESP of +8.76% and a Zacks Rank #3 at present.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Is Colgate (CL) Poised to Beat Earnings Estimates in Q2?
Colgate-Palmolive Company (CL - Free Report) is slated to release second-quarter 2020 results on Jul 31, before the opening bell. In the last-reported quarter, this global consumer products company delivered an earnings beat of 2.7%. Moreover, the company recorded an earnings surprise of 0.7%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for Colgate’s second-quarter earnings is pegged at 70 cents per share, suggesting a decline of 2.8% from the year-ago quarter. The consensus estimate has remained unchanged in the past 30 days. For second-quarter revenues, the consensus mark is pegged at $3.8 billion, suggesting a 1.8% decline from the prior-year reported figure.
Factors to Note
Colgate’s increased investment in brands, favorable pricing strategy, innovative product launches and enhancement of e-commerce capabilities have been contributing to the top line, even amid the coronavirus pandemic. We expect strong volume growth and robust pricing, which aided its top line across most regions in the first quarter, to bolster sales in the to-be-reported quarter.
ColgatePalmolive Company Price and EPS Surprise
ColgatePalmolive Company price-eps-surprise | ColgatePalmolive Company Quote
Further, it has been benefiting from innovation and in-store implementation, which have been the guiding principles of its growth strategy. Also, the company remains focused on expanding the availability of its products through enhanced distribution to newer markets and channels, which is likely to help improve its organic sales performance. These factors are likely to have aided the company’s top line in the second quarter.
It increased focus on the platform as more consumers are using online services for essential needs, given the COVID-19 outbreak. This helped the e-commerce business grow more than 50% in the first quarter. We note that the company has been expanding the availability of its products through the e-commerce offerings with the launch of Hill’s to home, which enables pet parents to purchase prescription diet products directly from their veterinarian with home delivery option. All these actions are likely to have fueled sales in the to-be-reported quarter.
In spite of these tailwinds, concerns related to higher selling, general and administrative expenses, unfavorable currency fluctuations and stiff competition cannot be ignored. Moreover, any escalation in raw and packaging-material expenses might have impacted margins to an extent.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Colgate has a Zacks Rank #3 and an Earnings ESP of +0.81%.
Other Stocks With a Favorable Combination
Here are three other companies you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
Monster Beverage Corporation (MNST - Free Report) currently has an Earnings ESP of +2.35% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Clorox Company (CLX - Free Report) presently has an Earnings ESP of +0.59% and a Zacks Rank #2.
The Estee Lauder Companies Inc. (EL - Free Report) has an Earnings ESP of +8.76% and a Zacks Rank #3 at present.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>