Categories AlphaGraphs, Earnings, Retail

Colgate-Palmolive’s stock tanks despite Q4 results beat

Colgate-Palmolive Company (CL) reported better-than-expected revenue and earnings for the fourth quarter of 2018 but shares fell 3.2% in premarket hours on Friday.

Worldwide net sales declined 2% year-over-year to $3.81 billion while organic sales grew 2%. Global unit volume rose 0.5%. The professional skin care acquisitions contributed 1% to net sales and unit volume growth during the quarter.

Colgate-Palmolive fourth quarter 2018 earnings infographic
Colgate-Palmolive Q4 2018 Earnings Infographic

On a GAAP basis, net income was $606 million or $0.70 per share compared to $323 million or $0.37 per share in the prior-year quarter. Last year’s earnings results were impacted by higher aftertax charges from the Global Growth and Efficiency Program and a charge of $275 million related to the US tax reform.

On an adjusted basis, net income dropped 3% to $638 million and diluted EPS fell 1% to $0.74 from the prior-year period.

Also see: Colgate-Palmolive Q4 2018 Earnings Conference Call Transcript

Colgate plans to increase investments in its brands, e-commerce capabilities and in its professional skin care businesses, Elta MD and PCA Skin. The company is also looking to expand its portfolio by rolling out its elmex and meridol brands into new markets.

Colgate-Palmolive sinks after revenues miss estimates

Colgate posted sales declines in all its regions except for North America which saw a growth of 5% in sales and 3% in unit volume. Net sales in the Hill’s Pet Nutrition segment grew 6% during the quarter.

For 2019, Colgate expects net sales to be flat to up low-single-digits, with organic sales growth of 2-4%. On a GAAP basis, based on current spot rates, the company expects to see gross margin expansion and a low-single-digit decline in EPS. Adjusted EPS is expected to decline in the mid-single-digit range.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

FDX Earnings: FedEx Q1 adjusted earnings drop; revenue up 5%

Cargo giant FedEx Corporation (NYSE: FDX) Thursday reported a decline in first-quarter adjusted earnings, despite an increase in revenues. The company also provided guidance for fiscal 2023. Net income, adjusted

Key highlights from Darden Restaurants (DRI) Q1 2023 earnings results

Darden Restaurants, Inc. (NYSE:DRI) reported first quarter 2023 earnings results. Total sales increased 6.1% year-over-year to $2.4 billion, driven by blended same-restaurant sales growth of 4.2%. Net earnings amounted to

ACN Earnings: Key quarterly highlights from Accenture’s Q4 2022 financial results

Accenture (NYSE: ACN) reported fourth quarter 2022 earnings results today. Total revenues were $15.4 billion, up 15% year-over-year in US dollars and up 22.4% in local currency. Net income attributable

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top