Colgate-Palmolive Q3 Results Surpass Street’s Estimates

Multinational consumer products company Colgate-Palmolive (CL) has reported strong results for the third quarter of 2021. Adjusted earnings of $0.81 per share increased 3% year-over-year, ahead of the Street’s estimates of $0.79 per share.

Revenues climbed 6.5% year-over-year to $4.41 billion, marginally beating analysts' expectations of $4.4 billion. Revenues of Oral, Personal and Home Care segment (81% of total sales) rose 3.5% on higher sales in the Latin America region. Revenues of Pet Nutrition segment grew 20%.

The company said, as of September 30, Colgate held its leadership position in toothpaste and manual toothbrushes with a global market share of 39.5% and 31%, respectively, year-to-date. (See Colgate-Palmolive stock chart on TipRanks),

Colgate-Palmolive’s Chairman, President and CEO, Noel Wallace, said, “We are encouraged by our performance this quarter, but as we look around the world, there is still much uncertainty stemming from the COVID-19 pandemic, supply chain disruptions and volatility in consumer demand and currencies."

"In this difficult environment, we remain committed to executing our plans with focus and agility and believe we have the right strategies in place to continue to deliver sustainable, profitable growth over the long term,” Wallace added.

For 2021, Colgate-Palmolive projects net sales to increase between 4% and 7% year-over-year. It forecasts adjusted EPS to grow in the mid-to-high single-digit range.

Last week, Evercore ISI analyst Robert Ottenstein maintained a Buy rating on Colgate-Palmolive with a price target of $95 (24.7% upside potential).

Ottenstein said, “Unilever and Procter’s results confirmed the risk to Colgate’s gross margins; the top-line looks OK, as Latin America and Hill’s are holding up. Competitors’ pricing actions, taken or announced, should pave the way for an earnings recovery in 2022.” (See Analysts’ Top Stocks on TipRanks)

Overall, the stock has a Moderate Buy consensus rating based on 3 Buys and 8 Holds. The average Colgate-Palmolive price target of $87.09 implies 14.3% upside potential from current levels.

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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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