Colgate-Palmolive Co. Earnings Cheat Sheet: Powering Ahead

S&P 500 (NYSE:SPY) component Colgate-Palmolive Co. (NYSE:CL) reported its results for the third quarter. Colgate Palmolive manufactures and markets a number of oral, personal, home care, and pet nutrition products for customers around the world.

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Colgate-Palmolive Earnings Cheat Sheet for the Third Quarter

Results: Net income for the personal products company rose to $643 million ($1.31 per share) vs. $619 million ($1.21 per share) in the same quarter a year earlier. This marks a rise of 3.9% from the year earlier quarter.

Revenue: Rose 11.2% to $4.38 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CL fell in line with the mean analyst estimate of $1.31 per share. Analysts were expecting revenue of $4.37 billion.

Quoting Management: Ian Cook, Chairman, President and Chief Executive Officer commented on the results and outlook excluding the third quarter 2011 items noted above, “We are pleased with our strong top and bottom line growth this quarter with worldwide net sales, operating profit, net income and diluted earnings per share all increasing versus year ago, despite very sharp increases in material costs, an intense competitive environment and challenging macroeconomic conditions worldwide.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 3.2% and in the first quarter, the figure rose 61.3%.

Gross margin shrank 3.3 percentage points to 56.2%. The contraction appeared to be driven by increased costs, which rose 20.1% from the year earlier quarter while revenue rose 11.2%.

The company has now fallen in line with estimates for the past two quarters. It reported net income of $1.26 in the second quarter and net income of $1.16 in the first quarter.

Revenue has now gone up for three straight quarters. In the second quarter, revenue rose 9.7% to $4.18 billion while the figure rose 4.3% in the first quarter from the year earlier.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next quarter performance. The average estimate for the fourth quarter is now $1.33 per share, down from $1.35. In the past month, the average estimate for the fiscal year has fallen from $5.07 per share to $5.05 abs.

Competitors to Watch: The Procter & Gamble Co. (NYSE:PG), Church & Dwight Co., Inc. (NYSE:CHD), The Clorox Company (NYSE:CLX), CCA Industries, Inc. (AMEX:CAW), Unilever plc (NYSE:UL), Avon Products, Inc. (NYSE:AVP), The Stephan Co. (SPCO), Kimberly-Clark Corporation (NYSE:KMB), PC Group, Inc. (PCGR), and Alberto-Culver Company (NYSE:ACV).

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(Source: Xignite Financials)