) is scheduled to report its first-quarter fiscal 2014 results on
Apr 25. Last quarter, this global dealer in consumer goods posted
a positive earnings surprise of approximately 1.35%. Let's see
how things are shaping up for this announcement.
Growth Factors in the Past Quarter
Colgate's strong fourth-quarter fiscal 2013 performance was
mainly driven by an improved top line and better cost
containment. Top-line growth during the quarter resulted from a
rise in global unit volumes and improved performance across all
operating regions, except Europe/South Pacific, offset by
currency translation effects.
Looking ahead, Colgate-Palmolive anticipates its growth
momentum to continue into 2014 as it remains on track with its
global restructuring program. Further, the company's stringent
focus on funding-the-growth programs and strategic worldwide
pricing endeavors should help boost its bottom line. As a result,
the company expects strong earnings as well as gross margin
expansion in 2014.
Our proven model does not conclusively project Colgate as likely
to beat earnings this quarter. A stock needs to have both a
and a Zacks Rank #1, 2 or 3 to surpass earnings estimates.
However, this is not the case here due to the following factors:
ESP for Colgate is 0.00% since the Most Accurate estimate stands
at 68 cents per share, which is in line with the Zacks Consensus
Zacks #3 Rank (Hold):
Colgate's Zacks Rank #3 increases the predictive power of ESP.
However, we also need to have a positive ESP to be confident of
an earnings surprise call. We caution against stocks with a Zacks
Rank #4 and #5 (Sell-rated stocks) going into earnings
announcement, especially when the company is undergoing negative
COLGATE PALMOLI (CL): Free Stock Analysis
To read this article on Zacks.com click here.