Colgate-Palmolive Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Colgate-Palmolive (NYSE:CL) will unveil its latest earnings on Thursday, July 26, 2012. 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 analyst estimate is for net income of $1.33 per share, a rise of 5.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.34. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.33 during the last month. For the year, analysts are projecting profit of $5.37 per share, a rise of 6.8% from last year.

Past Earnings Performance: Last quarter, the company met expectations by reporting net income of $1.24 per share last quarter. In the previous fourth quarter of the last fiscal year, the company beat estimates by one cent.

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Stock Price Performance: Between May 23, 2012 and July 20, 2012, the stock price had risen $5.51 (5.6%), from $98.39 to $103.90. The stock price saw one of its best stretches over the last year between June 11, 2012 and June 18, 2012, when shares rose for six straight days, increasing 1.7% (+$1.68) over that span. It saw one of its worst periods between December 29, 2011 and January 11, 2012 when shares fell for nine straight days, dropping 5.1% (-$4.71) over that span.

A Look Back: In the first quarter, profit rose 3% to $593 million ($1.23 a share) from $576 million ($1.16 a share) the year earlier, meeting analyst expectations. Revenue rose 5.2% to $4.2 billion from $3.99 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.18 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.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 9.7% in the second quarter of the last fiscal year, 11.2% in the third quarter of the last fiscal year and 4.9% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Wall St. Revenue Expectations: Analysts are projecting a rise of 2.2% in revenue from the year-earlier quarter to $4.27 billion.

Analyst Ratings: There are mostly holds on the stock with 13 of 22 analysts surveyed giving that rating.

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

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