Colgate-Palmolive Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Colgate-Palmolive (NYSE:CL) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Colgate Palmolive manufactures and markets a number of oral, personal, home care, and pet nutrition products for customers around the world.

Colgate-Palmolive Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.40 per share, a rise of 7.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.39. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.40 during the last month. Analysts are projecting profit to rise by 6.4% versus last year to $5.35.

Past Earnings Performance: Last quarter, the company reported profit of $1.38 per share, in line with the mean estimate. It was the third straight quarter of meeting expectations.

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Wall St. Revenue Expectations: On average, analysts predict $4.31 billion in revenue this quarter, a rise of 3.4% from the year-ago quarter. Analysts are forecasting total revenue of $17.12 billion for the year, a rise of 2.3% from last year’s revenue of $16.73 billion.

Analyst Ratings: There are mostly holds on the stock with 13 of 21 analysts surveyed giving that rating.

A Look Back: In the third quarter, profit rose 1.7% to $654 million ($1.36 a share) from $643 million ($1.31 a share) the year earlier, meeting analyst expectations. Revenue fell 1.2% to $4.33 billion from $4.38 billion.

Here’s how Colgate-Palmolive traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 3% in the first quarter and 0.8% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 4.9% in the fourth quarter of the last fiscal year, 5.2% in the first quarter and 2%in the second quarter before dropping in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.29 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.36 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3.8% to $3.7 billion while assets decreased 1.5% to $4.76 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)