Insights into Colgate-Palmolive’s 4Q16 Earnings



Earnings match estimates

Colgate-Palmolive (CL) matched analysts’ earnings estimates in 4Q16. In the last 11 quarters, excluding 4Q16, the company exceeded analysts’ earnings expectations seven times. It delivered adjusted EPS (earnings per share) of $0.75 in 4Q16, which ended on December 31, 2016. Adjusted EPS for 4Q16 rose 2.7%, marking the second quarter of a rise in earnings for the past seven quarters.

Earnings in fiscal 4Q16

The 2.7% rise YTD (year-to-date) in Colgate-Palmolive’s 4Q16 adjusted EPS was due to improved margins. Adjusted EPS excluded the impact of charges of $0.06 per share related to the company’s Global Growth and Efficiency Program and a charge of $0.01 per share related to a litigation matter.

For fiscal 2016, CL reported adjusted EPS of $2.81, which was flat on a YoY (year-over-year) basis. Adjusted EPS for 2016 excludes charges for its 2012 restructuring program, its after-tax gain on the sale of land in Mexico, benefits from tax matters, and a charge related to a litigation matter.

Comparison with peers

Kimberly-Clark (KMB) reported its fiscal 4Q16 results on January 24, 2017. Its adjusted EPS rose 2.1% to $1.45.

Procter & Gamble’s (PG) fiscal 2Q17 adjusted EPS rose 3.8% YoY due to improved margins. It also exceeded analysts’ expectations by 1.9%.

Clorox (CLX) will report its fiscal 2Q17 results on February 3, 2017. Analysts are expecting earnings of $1.22, a rise of 7.0% YoY.

Next, let’s take a look at Colgate-Palmolive’s sales performance.

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