Colgate-Palmolive (NYSE:CL) Releases Earnings Results, Beats Expectations By $0.04 EPS

Colgate-Palmolive (NYSE:CL) announced its quarterly earnings data on Friday. The company reported $0.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.04, FiscalAI reports. The business had revenue of $5.36 billion for the quarter, compared to analysts’ expectations of $5.36 billion. Colgate-Palmolive had a return on equity of 386.76% and a net margin of 10.04%.The company’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same period last year, the firm earned $0.92 earnings per share.

Here are the key takeaways from Colgate-Palmolive’s conference call:

• Broad-based second-quarter performance: Colgate-Palmolive reported organic sales growth in four of five divisions and three of four categories, with base-business EPS ahead of expectations, free cash flow up 18%, and $1.4 billion returned to shareholders.
• Emerging markets, Europe, and Hill’s led growth. Hill’s organic sales increased 4% excluding discontinued private-label business and continued to gain share despite a largely flat pet-care category, while Latin America delivered balanced pricing and volume growth.
• U.S. performance remains a concern. Category softness, heightened competition, retailer inventory reductions, and select pricing gaps contributed to weakness; management plans increased advertising, innovation, and targeted promotional actions in the second half, but cautioned that improvement will not be linear.
• Management raised full-year gross-margin expectations to roughly flat, supported by revenue-growth management, productivity, mix, and pricing, while warning that raw-material costs and tariffs are expected to be higher in the second half. Organic sales guidance was not increased because of continued volatility in consumer demand, oil prices, geopolitical conditions, and North American categories.
• Hill’s is rolling out its fresh, single-protein pet-food offering gradually through veterinary, specialty, and neighborhood vet channels, prioritizing professional endorsement, product quality, and long-term brand building over near-term volume; Colgate also expects expanding AI, digital, and data capabilities to improve productivity and marketing effectiveness.

Colgate-Palmolive Price Performance

Shares of NYSE CL traded down $0.31 during midday trading on Friday, hitting $91.29. The company had a trading volume of 6,660,083 shares, compared to its average volume of 6,003,832. The firm has a market capitalization of $73.05 billion, a price-to-earnings ratio of 35.52, a price-to-earnings-growth ratio of 4.92 and a beta of 0.33. Colgate-Palmolive has a twelve month low of $74.54 and a twelve month high of $99.33. The business has a 50-day simple moving average of $90.96 and a two-hundred day simple moving average of $89.42. The company has a quick ratio of 0.67, a current ratio of 1.02 and a debt-to-equity ratio of 16.33.

Colgate-Palmolive Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Monday, July 20th will be given a dividend of $0.53 per share. The ex-dividend date is Monday, July 20th. This represents a $2.12 dividend on an annualized basis and a yield of 2.3%. Colgate-Palmolive’s dividend payout ratio is presently 82.49%.

More Colgate-Palmolive News

Here are the key news stories impacting Colgate-Palmolive this week:

• Positive Sentiment: Second-quarter adjusted/base-business EPS was $0.99, exceeding the $0.95 consensus estimate and rising from $0.92 a year earlier. Revenue increased 4.9% year over year to $5.36 billion, in line with expectations. Colgate-Palmolive Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Profitability improved, with GAAP and base-business gross margins expanding 140 basis points to 61.5%. Productivity gains and organic sales growth helped offset increased brand investment, while Latin America led regional growth and toothpaste maintained its global leadership. Colgate Q2 Earnings Beat Estimates on Strong Margins
• Neutral Sentiment: Management reaffirmed its full-year sales forecast, with expected revenue of approximately $20.8 billion to $21.6 billion. Maintaining guidance supports stability, but the range signals limited visibility in a choppy consumer environment. Colgate-Palmolive Reaffirms Annual Sales Forecast
• Negative Sentiment: North American demand remained muted, creating concern that the company’s strongest international performance may not fully offset weakness in its largest developed market. Investors also focused on management’s warning that new tariffs could outweigh a recent refund benefit, potentially pressuring future earnings. Colgate Warns New Tariffs Will Outweigh Recent Refund Windfall
• Negative Sentiment: GAAP EPS declined 5% to $0.86 despite the adjusted earnings beat, and organic sales growth was only 2.4%. The combination of slower underlying growth, domestic weakness and tariff risk is outweighing the quarter’s positive margin and earnings performance.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Van Diest Capital LLC acquired a new position in shares of Colgate-Palmolive in the fourth quarter worth $214,000. Compound Planning Inc. raised its stake in Colgate-Palmolive by 178.3% in the 4th quarter. Compound Planning Inc. now owns 20,928 shares of the company’s stock valued at $1,654,000 after purchasing an additional 13,409 shares during the last quarter. Invesco Ltd. lifted its holdings in Colgate-Palmolive by 1.5% in the 4th quarter. Invesco Ltd. now owns 8,598,021 shares of the company’s stock valued at $679,416,000 after purchasing an additional 130,028 shares in the last quarter. Corient Private Wealth LLC boosted its stake in shares of Colgate-Palmolive by 64.6% during the 4th quarter. Corient Private Wealth LLC now owns 783,928 shares of the company’s stock worth $61,946,000 after purchasing an additional 307,744 shares during the last quarter. Finally, Strive Financial Group LLC acquired a new stake in shares of Colgate-Palmolive during the 4th quarter worth about $102,000. 80.41% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

CL has been the subject of several analyst reports. Royal Bank Of Canada reiterated an “outperform” rating and set a $102.00 price target on shares of Colgate-Palmolive in a report on Monday, May 4th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $99.00 target price on shares of Colgate-Palmolive in a research report on Monday, May 4th. Barclays raised their price target on Colgate-Palmolive from $80.00 to $87.00 and gave the stock an “equal weight” rating in a research note on Tuesday, July 21st. Sanford C. Bernstein assumed coverage on Colgate-Palmolive in a research note on Thursday, June 11th. They issued a “market perform” rating and a $96.00 price objective for the company. Finally, Citigroup increased their price objective on Colgate-Palmolive from $105.00 to $110.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Twelve analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $97.82.

About Colgate-Palmolive

Colgate-Palmolive Company is a global consumer products company with a long history in household and personal care categories. The business traces its roots to the early 19th century and has evolved into a multinational manufacturer and marketer of everyday consumer goods focused on health, hygiene and home care.

The company’s core activities center on oral care, personal care, home care and pet nutrition. Its product portfolio includes toothpaste, toothbrushes and mouthwash in oral care; soaps, body washes and deodorants in personal care; dishwashing liquids, surface cleaners and other household products in home care; and scientifically formulated pet foods under its pet nutrition business.