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Colgate-Palmolive Q2 Profit Rises, but Sales Fall Short (CL)

Consumer products maker Colgate-Palmolive Company ( CL

) said Thursday that its second quarter profit rose 7% from last year, matching analyst expectations, although its revenue fell short and the company warned currency effects would negatively impact its full-year results.

The New York-based company reported second quarter net income of $603 million, or $1.17 per share, compared with $562 million, or $1.07 per share, in the year-ago period. Net sales rose less than 1% to $3.81 billion.

On average, Wall Street analysts expected a matching profit of $1.17 per share, on higher sales of $3.95 billion.

Looking ahead, the company warned its full-year profit would be hampered more than originally expected by currency devaluation in Venezuela. It now expects a 10 cent to 15 cent hit on full-year results, compared with a prior estimate of 6 cents to 10 cents.

Colgate-Palmolive shares fell $3.87, or -4.6%, in premarket trading Thursday.

The Bottom Line

We had removed shares of CL from our recommended list back on May 14, when the stock was trading at $83.13. The stock has technical support in the $76-$78 price area. If the shares can firm up, we see overhead resistance around the $86 price level. We would remain on the sidelines for now.

Colgate-Palmolive Company ( CL ) is not recommended at this time, holding a Dividend.com 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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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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