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Colgate-Palmolive Third Quarter Earnings
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Colgate-Palmolive (NYSE:CL) announced its results for the third quarter on October 25, 2012. Colgate Palmolive manufactures and markets a number of oral, personal, home care, and pet nutrition products for customers around the world.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Everything Investors Need To Know About Earnings
The Numbers: Colgate-Palmolive's EPS fell in line with analyst expectations of $1.38 per share while quarterly revenue of $4.33 billion topped estimates of $4.27 billion. Revenue fell 1.2% from the same period last year. Slumping revenue in the last quarter ends Colgate-Palmolive's streak of four consecutive quarters of revenue increases. Colgate-Palmolive's profit for the third quarter was $654 million. This is 1.7% higher than the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote: Ian Cook, Chairman, President and Chief Executive Officer, commented on the results and outlook excluding the 2012 and 2011 items noted above and the costs of the Global Growth and Efficiency Program discussed below, "We are very pleased to have achieved another quarter of strong profitability with gross profit margin, operating profit margin and net income as a percent to sales all increasing versus year ago, despite an intense competitive environment and challenging macroeconomic conditions worldwide."
A Look Back: Net income has increased 0.8% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 3.9% from the year-earlier quarter.
The company's cost of sales fell 6.1% from a year earlier to $1.8 billion. Last quarter, cost of sales was 41.6% of revenue versus 43.8% a year earlier.
Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $1.38 a share to $1.40 over the last 60 days. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. For the fiscal year, the average estimate has moved up from $5.34 a share to $5.36 over the last thirty days.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Everything Investors Need To Know About Earnings
The Numbers: Colgate-Palmolive's EPS fell in line with analyst expectations of $1.38 per share while quarterly revenue of $4.33 billion topped estimates of $4.27 billion. Revenue fell 1.2% from the same period last year. Slumping revenue in the last quarter ends Colgate-Palmolive's streak of four consecutive quarters of revenue increases. Colgate-Palmolive's profit for the third quarter was $654 million. This is 1.7% higher than the year-ago quarter. Last quarter marked the third in a row of rising net income.
Management Quote: Ian Cook, Chairman, President and Chief Executive Officer, commented on the results and outlook excluding the 2012 and 2011 items noted above and the costs of the Global Growth and Efficiency Program discussed below, "We are very pleased to have achieved another quarter of strong profitability with gross profit margin, operating profit margin and net income as a percent to sales all increasing versus year ago, despite an intense competitive environment and challenging macroeconomic conditions worldwide."
A Look Back: Net income has increased 0.8% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 3.9% from the year-earlier quarter.
The company's cost of sales fell 6.1% from a year earlier to $1.8 billion. Last quarter, cost of sales was 41.6% of revenue versus 43.8% a year earlier.
Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $1.38 a share to $1.40 over the last 60 days. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. For the fiscal year, the average estimate has moved up from $5.34 a share to $5.36 over the last thirty days.
by
Investopedia Staff
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