Why Colgate-Palmolive Stock Fell after 4Q16 Results



Fiscal 4Q16 results

Colgate-Palmolive (CL) stock fell 5.2% and closed at $64.68 per share on January 27, 2017, after it announced its 4Q16 results. The company failed to surpass the consensus sales estimate for the second consecutive quarter. But its earnings matched the estimates for 4Q16, which ended on December 31, 2016.

The company’s top line was again impacted by the negative impact of foreign exchange, the deconsolidation of its Venezuela business, and unfavorable macro conditions in certain markets, including demonetization of the Indian currency.

Price movement

The weekly, monthly, and YTD (year-to-date) price movements for CL stock were -4.8%, -1.5%, and -1.2%, respectively, as of January 27, 2017. The stock is trading 2.7% below its 20-day moving average, 2.0% below its 50-day moving average, and 7.7% below its 200-day moving average. It has a market cap of $57.5 billion.

Comparison with peers

Colgate-Palmolive’s YTD movement of -1.2% is lower than its peers and the S&P 500 Index. The stock prices for Procter & Gamble (PG), Clorox (CLX), and Kimberly-Clark (KMB) have risen 3.1%, 0.40%, and 6.0%, respectively, on a YTD basis.

As of January 27, 2017, the S&P 500 Index and the Consumer Staples Select Sector SPDR ETF (XLP) have risen 2.5% and 1.3%, respectively.

Series overview

In this series, we’ll focus on Colgate-Palmolive’s 4Q16 results. We’ll look at the company’s earnings, sales, segment performance, and margins in 4Q16. We’ll also take a look at the company’s valuation and analysts’ recommendations.

Let’s start by looking at Colgate-Palmolive’s fiscal 4Q16 earnings.

More From Market Realist