Core Insights - Colgate-Palmolive reported quarterly earnings of $0.91 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, with an earnings surprise of +2.25% [1] - The company posted revenues of $5.13 billion for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.07%, but showing a year-over-year increase from $5.03 billion [2] - The stock has underperformed the market, losing about 15.8% year-to-date compared to the S&P 500's gain of 16% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.94, with expected revenues of $5.15 billion, and for the current fiscal year, the EPS estimate is $3.67 on revenues of $20.31 billion [7] - The estimate revisions trend for Colgate-Palmolive was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Consumer Products - Staples industry, to which Colgate-Palmolive belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

Financial Performance & Guidance - Net sales increased by 20%[18] - Organic sales increased by 04%, led by oral care, including a 08% negative impact from lower private label pet sales[18] - The company returned $21 billion to shareholders year to date[31] - Net sales growth is expected to be up low single digits, including a flat to low-single-digit negative impact from foreign exchange[24] - Organic sales growth is now expected to be 1% to 2%, roughly in line with year-to-date organic sales growth of 12%, including an approximately 70 basis point impact from exit from private label pet sales[25] - The company expects approximately $75 million in tariff costs for 2025[26] Strategic Initiatives - The company announced a new three-year productivity program to drive future top and bottom line growth and support the Company's 2030 strategy[20] - The Strategic Growth and Productivity Program is projected to result in cumulative pre-tax charges totaling between $200 and $300 million over the course of the three-year program[21] - Colgate Bright Smiles, Bright Futures achieved a new milestone - reaching approximately 2 billion children and their families worldwide since 1991[18] Market Share - Global toothpaste market share was up 10 basis points on a volume basis year to date[18] - Global manual toothbrush market share was up 50 basis points on a volume basis year to date[18]

Core Insights - Colgate-Palmolive Co. reported a slight increase in third-quarter sales, driven by higher pricing that compensated for a decline in product volumes [1] Sales Performance - The company experienced a rise in sales due to increased pricing strategies, which helped mitigate the impact of reduced product volumes [1] Product Volumes - There was a noted drop in product volumes, indicating potential challenges in demand or market competition [1]

Core Viewpoint - Colgate-Palmolive has reduced its annual sales forecast, indicating that rising economic uncertainty is affecting consumer spending on higher-priced essential items [1] Company Summary - Colgate-Palmolive is facing challenges in maintaining sales due to economic conditions that are leading consumers to be more cautious with their spending [1] - The company’s adjustment in sales forecast reflects a broader trend in the market where consumers are prioritizing lower-cost alternatives [1] Industry Summary - The consumer goods industry, particularly in essential products, is experiencing a shift as economic uncertainty influences purchasing behavior [1] - There is a growing trend of consumers opting for more affordable options, which may impact sales for companies offering premium products [1]

Financial Performance - Net sales for Q3 2025 increased by 2.0% to $5,131 million compared to $5,033 million in Q3 2024[2] - GAAP EPS rose by 1% to $0.91, while Base Business EPS remained flat at $0.91[3] - Organic sales growth was 0.4%, impacted by a 0.8% decline from exiting the private label pet sales business[3] - Total operating profit for Q3 2025 was $1,059 million, a decrease of 1% compared to Q3 2024[11] - Net income attributable to Colgate-Palmolive Company for Q3 2025 was $735 million, compared to $737 million in Q3 2024[25] - Free cash flow before dividends for the nine months ended September 30, 2025, was $2,358 million, down from $2,461 million in the same period of 2024[31] - Reported GAAP net income for 2025 was $2,951 million, with a diluted earnings per share of $2.67 and an effective tax rate of 23.2%[53] - Non-GAAP net income for 2025 was $3,027 million, with a diluted earnings per share of $2.74, maintaining the same effective tax rate of 23.2%[53] - Reported GAAP net income for 2024 was $2,963 million, with a diluted earnings per share of $2.61 and an effective tax rate of 23.4%[53] - Non-GAAP net income for 2024 was $3,040 million, with a diluted earnings per share of $2.69, reflecting a slight decrease in effective tax rate to 23.1%[53] Profitability Metrics - The gross profit margin decreased by 170 basis points to 59.4% on a GAAP basis[3] - Gross profit margin decreased to 59.4% in Q3 2025 from 61.1% in Q3 2024[25] - Operating profit for Q3 2025 was $1,059 million, slightly down from $1,065 million in Q3 2024, resulting in an operating profit margin of 20.6%[25] - Gross profit for Q3 2025 was $3,049 million, down from $3,074 million in Q3 2024, reflecting a gross profit margin decrease from 61.1% to 59.4%[46] - For the nine months ended September 30, 2025, gross profit was $9,105 million, compared to $9,179 million in the same period of 2024, with a gross profit margin of 60.1%[51] Sales Performance by Region - North America experienced a net sales decline of 0.4%, while Europe saw an increase of 7.6%[9] - North America experienced a sales decline of 0.4%, with organic sales down 0.5% and volume also down 0.5%[38] - Europe showed strong performance with a sales increase of 7.6%, organic sales growth of 1.2%, and volume growth of 0.8%[38] - Africa/Eurasia reported a sales increase of 6.8%, with organic sales growth of 6.2% and volume decline of 1.1%[38] - Emerging Markets reported a sales increase of 1.6%, with organic sales growth of 1.0% despite a volume decline of 2.6%[38] Strategic Initiatives - The company is implementing a new 2030 strategy aimed at accelerating growth and enhancing innovation capabilities[5] - The Strategic Growth and Productivity Program is designed to support organizational structure and achieve consistent earnings per share growth over the long term[5] - The acquisition of the Prime100 pet food business positively impacted reported volume by 0.4% for Total Company[39] Expenses and Costs - Advertising expenses for Q3 2025 were $674 million, down from $694 million in Q3 2024[25] - Selling, general and administrative expenses for Q3 2025 were $1,971 million, slightly down from $1,979 million in Q3 2024[46] - The company incurred $65 million in ERISA litigation costs, which did not affect the diluted earnings per share[53] - Acquisition-related costs amounted to $9 million, contributing minimally to the overall financial performance[53] Taxation - The effective tax rate for Q3 2025 was 22.8%, up from 21.3% in Q3 2024[25] - The effective tax rate for the company was calculated based on applicable tax laws and statutory rates in relevant jurisdictions[54] - The impact of non-GAAP items on the effective tax rate reflects the difference calculated with and without these adjustments[54]

Core Insights - Colgate-Palmolive reported an increase in sales during the third quarter, driven by higher prices that compensated for a decline in sales volumes [1] Sales Performance - The company experienced a rise in sales, indicating resilience in pricing strategies despite volume challenges [1]

Colgate-Palmolive. reported third-quarter earnings above Wall Street’s consensus, driven by resilient consumer demand in Latin American https://t.co/A8Us5YSaXv ...

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Earnings Report - Colgate-Palmolive Company is set to release its third-quarter earnings results on October 31, with analysts expecting earnings of 89 cents per share, a decrease from 91 cents per share in the same period last year [1] - The consensus estimate for quarterly revenue is $5.13 billion, up from $5.03 billion a year earlier [1] Previous Quarter Performance - In the second quarter, Colgate-Palmolive reported adjusted earnings per share of 92 cents, surpassing the analyst consensus estimate of 89 cents [2] - Following the second-quarter report, Colgate-Palmolive shares increased by 1% to close at $76.51 [2] Analyst Ratings and Price Targets - Raymond James analyst Olivia Tong maintained an Outperform rating but reduced the price target from $105 to $95 [4] - JP Morgan analyst Andrea Teixeira kept an Overweight rating while lowering the price target from $95 to $88 [4] - Piper Sandler analyst Michael Lavery assigned a Neutral rating with a price target of $84 [4] - Barclays analyst Lauren Lieberman maintained an Equal-Weight rating and cut the price target from $87 to $82 [4] - Morgan Stanley analyst Dara Mohsenian upheld an Overweight rating and decreased the price target from $104 to $96 [4]

Core Insights - Diamond Hill Capital's "Select Fund" underperformed the Russell 3000 Index in Q3 2025, returning 4.98% compared to the index's 8% gain [1] - The fund initiated four new positions in Q3, including Colgate-Palmolive Company, indicating a belief in the long-term growth potential of certain undervalued companies [3] Company Performance - Colgate-Palmolive Company (NYSE:CL) experienced a one-month return of -2.91% and a 52-week loss of 18.86%, closing at $75.73 per share with a market capitalization of $61.207 billion on October 29, 2025 [2] - Despite the overall market rally, Colgate-Palmolive's stock is not among the top 30 most popular stocks among hedge funds, with 59 hedge fund portfolios holding it at the end of Q2 2025, down from 65 in the previous quarter [4] Investment Outlook - JPMorgan has cut Colgate-Palmolive's price target to $88 while maintaining an overweight rating, suggesting a cautious but positive outlook [4] - The investment community acknowledges Colgate-Palmolive's potential but sees greater upside in certain AI stocks, indicating a competitive investment landscape [4]