Colgate-Palmolive Company (CL) reported better-than-expected Q2 results today. The consumer products company announced adjusted earnings of $0.91 per share, up 18% year-over-year, surpassing analysts’ expectations of $0.87 per share.
CL’s Q2 Revenue Breakdown
The company generated net sales of $5.1 billion in the second quarter, marking a 5% increase year-over-year and exceeding consensus estimates of $5 billion. Colgate-Palmolive maintained its market leadership in oral care, with a 41.5%global marketshare in toothpaste and a 32.2% global share in manual toothbrushes year-to-date.
In fact, Colgate-Palmolive’s oral, personal, and home care segments generated revenues of $3.9 billion, accounting for more than 75% of its total revenues in Q2.
Organic sales in Latin America, a key revenue region, jumped 18.8% in the quarter, up from 16% a year earlier. The company’s increased investments in advertising helped it counter competition from lower-priced private labels.
CL’s FY24 Forecast
Colgate-Palmolive raised its organic sales growth forecast to between 6% and 8%, compared to the prior forecast of 5% to 7%. Furthermore, CL expects its adjusted earnings per share to grow by 8% to 11%, up from its previous outlook of mid to high-single-digit growth.
Is CL Stock a Good Investment?
Analysts remain cautiously optimistic about CL stock, with a Moderate Buy consensus rating based on 12 Buys and five Holds. Over the past one year, CL has increased by more than 30%, and the average CL price target of $104 implies an upside potential of 3.5% from current levels. These analyst ratings are likely to change following CL’s results today.
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