Colgate-Palmolive’s Q3 Profit Matches View; Revenue Misses; Will Slash Over 2,300 Jobs (CL)

By Staff,

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Consumer products maker Colgate-Palmolive Company ( CL ) on Thursday posted a rise in third quarter profits despite a downturn in revenue.

The New York-based company also disclosed plans to cut more than 2,300 jobs over the next few years in an effort to reduce costs.

Colgate reported third quarter net income of $654 million, or $1.36 per share, compared with $643 million, or $1.31 per share, in the year-ago period. Excluding special items, adjusted profit was $1.38 per share.

Revenue fell 1% from last year to $4.33 billion.

On average, Wall Street analysts expected a matching profit of $1.38 per share, albeit on higher revenue of $4.38 billion.

In a separate announcement, CL said it would reduce its workforce by 6% by the end of 2016. Based on the company's current head count of 38,600 employees, those job cuts would total about 2,316 workers. The move is expected to produce annual savings of $365 million to $435 million by the end of the layoffs.

Colgate-Palmolive shares were unchanged in premarket trading Thursday.

The Bottom Line
Shares of Colgate-Palmolive ( CL ) have a 2.33% dividend yield, based on last night's closing stock price of $106.56. The stock has technical support in the $100-$103 price area. The stock is trading near the all-time highs of $110-$111 a share.

Colgate-Palmolive Company ( CL ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: CL

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