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]

Performance Overview - The Dividend Kings experienced a decline of 1.58% in September, underperforming the SPDR S&P 500 ETF (SPY) by 4.47% [1] Current Month Performance - The performance in the current month is not showing improvement compared to previous results [1]

Core Insights - Colgate-Palmolive Company (CL) is anticipated to report a decline in earnings for Q3 2025, with revenues expected to reach $5.1 billion, reflecting a 2% increase year-over-year [1][9] Financial Performance - The consensus estimate for CL's earnings is set at 89 cents per share, indicating a 2.2% decline compared to the previous year [2][9] - In the last reported quarter, CL exceeded the consensus earnings estimate by 3.4%, with an average earnings surprise of 3.7% over the last four quarters [2] Earnings Prediction Model - The current model indicates a negative Earnings ESP of -0.61% for Colgate, with a Zacks Rank of 4 (Sell), suggesting a lower likelihood of an earnings beat this season [3] Business Momentum and Growth Drivers - Colgate's Q3 performance is expected to benefit from strong business momentum, driven by pricing strategies, funding-the-growth initiatives, and productivity improvements [4][9] - The company's focus on science-based innovation, such as the relaunch of Colgate Total and other product lines, is supporting category growth and brand penetration [5] Sales and Margin Expectations - Projected sales growth for Q3 2025 is 2.9%, with organic sales growth of 2.1%. Volume is expected to decline by 0.1%, offset by pricing gains of 2.2% [6] - Gross margin is predicted to expand by 60 basis points to 60.7% for Q3 2025, supported by strong pricing and revenue growth management initiatives [7] Regional Performance Challenges - Colgate's performance may face challenges from inflationary pressures, foreign currency fluctuations, and weak performance in key regions, particularly in Latin America [8][10] Market Performance and Valuation - Colgate's shares have decreased by 10.4% over the past three months, compared to a 5.1% decline in the industry [11] - The company trades at a forward P/E multiple of 20.18X, which is above the industry average of 19.05X and below the S&P 500's average of 23.69X, indicating a relatively high valuation [11]

Core Viewpoint - The article presents a contrarian viewpoint on Colgate-Palmolive (NYSE: CL), marking the first "sell" rating since November 2021, indicating a shift in sentiment towards the stock [1]. Group 1: Investment Strategy - The focus is on identifying undervalued stocks with a balance of risk and reward, emphasizing the importance of understanding ownership to limit risks while aiming for decent to high upside [1]. - The belief is that the best investment ideas are often the simplest, and a contrarian approach can yield better results [1].

Colgate-Palmolive Company (NYSE: CL ) is one of the highest-quality and truly global large-scale consumer staple businesses, and when the stock falls by nearly 20% over a period of just one year, it is time to examine the causes for that and see ifVladimir Dimitrov, CFA is a former strategy consultant within the field of brand and intangible assets valuation. During his career in the City of London he has been working with some of the largest global brands within the technology, telecom and banking sectors. ...

Core Viewpoint - Colgate-Palmolive Company will host a live webcast for its 2025 third quarter earnings conference call on October 31, 2025, at 8:30 a.m. ET [1] Company Information - The conference call will be led by Chairman, President and CEO Noel Wallace, CFO Stan Sutula, and Chief Investor Relations Officer and EVP, M&A John Faucher [1] - Investors can access the earnings press release, prepared materials, and the live audio webcast on Colgate's official website [1]

Core Viewpoint - The consumer staples sector, including companies like Procter & Gamble, Colgate-Palmolive, and Kimberly-Clark, is facing challenges due to weak consumer confidence and spending, but these companies remain reliable for long-term investors seeking passive income through dividends [1][2][5][16]. Group 1: Industry Overview - The consumer staples sector is roughly flat year-to-date, with Walmart's performance helping to mitigate losses [1]. - Procter & Gamble, Colgate-Palmolive, and Kimberly-Clark are major players in household and personal care products, with P&G leading in various categories [3][4]. - The current operating environment is challenging due to high raw material costs, geopolitical issues, and consumer uncertainty [10]. Group 2: Consumer Behavior and Market Dynamics - Weak consumer confidence is leading to cautious spending, with consumers opting for smaller packs or promotions to manage costs [7][9]. - There is a notable disconnect between stock market gains and consumer spending, with record AI spending benefiting corporations rather than consumers [8]. - Companies are adapting by offering larger package sizes or multipacks to provide better value, even if it results in lower margins [11]. Group 3: Financial Performance and Valuation - P&G and Colgate-Palmolive have seen less than 25% sales growth over the last decade, while Kimberly-Clark's sales are roughly flat [12]. - Operating margins for P&G and Colgate-Palmolive are high at 24.2% and 22%, respectively, but face pressure from inflation [13]. - All three companies are trading at steep discounts to their historical average valuations, making them attractive for long-term investors [18]. Group 4: Dividend Reliability - All three companies are recognized as Dividend Kings, having raised dividends for over 50 consecutive years, with current yields of 4.2% for Kimberly-Clark, 2.8% for P&G, and 2.7% for Colgate-Palmolive [17]. - These companies can support their dividends with earnings and free cash flow, even during periods of slower growth [20][22]. - Long-term investors are encouraged to focus on fundamentals and the potential for consistent passive income from these reliable dividend stocks [16][23].