What To Expect From Colgate-Palmolive's (CL) Q1 Earnings

Consumer products company Colgate-Palmolive (NYSE:CL) will be announcing earnings results tomorrow before the bell. Here's what investors should know.

Colgate-Palmolive beat analysts' revenue expectations by 1.4% last quarter, reporting revenues of $4.95 billion, up 6.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts' organic revenue growth estimates and a decent beat of analysts' gross margin estimates. 2024 guidance was within roughly in line with expectations, showing that the company is staying on track.

Is Colgate-Palmolive a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Colgate-Palmolive's revenue to grow 4% year on year to $4.96 billion, slowing from the 8.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.81 per share.

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing six upward and three downward revisions over the last thirty days. Colgate-Palmolive has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.

Looking at Colgate-Palmolive's peers in the household products segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kimberly-Clark posted flat year-on-year revenue, beating analysts' expectations by 1.2%, and WD-40 reported revenues up 6.8%, in line with Wall Street's consensus estimates. Kimberly-Clark traded up 6.9% following the results while WD-40 was down 8.7%.

Read our full analysis of Kimberly-Clark's results here and WD-40's results here.

Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the household products stocks have fared somewhat better, they have not been spared, with share price declining 3.9% over the last month. Colgate-Palmolive is down 1.2% during the same time and is heading into earnings with an average analyst price target of $92.1 (compared to share price of $88.9).

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