Post-Earnings Briefing - Colgate-Palmolive
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LONDON, August 8, 2014 /PRNewswire/ --
Investor-Edge.com has issued free post-earnings briefing on Colgate-Palmolive Co. (NYSE: CL) as the company recently featured in the headlines on Thursday, July 31, 2014, for reporting 4.0% year-over-year growth in organic sales (Net sales excluding foreign exchange, acquisitions and divestments) in Q2 2014, led by 6.5% year-over-year organic sales growth in the emerging markets. Meanwhile, the company's operating profit stood at $980 million, up 8% from $906 million in the second quarter 2013. The gross margin improved 30 basis points to 58.6% from 58.3% in the year ago period. Our free coverage report can be accessed at:
http://www.investor-edge.com/register
Earnings Overview
During Q2 2014, Colgate-Palmolive Co.'s global unit volume and pricing increased by 2.5% and 1.5%, respectively. The company witnessed a 4% year-over-year decline in net sales in Latin America, while net sales in Asia and Africa/Eurasia fell by 1.5% year-over-year and 1% year-over-year, respectively. However, the company had improved on its net sales in North America and Europe/South Pacific regions, with year-over-year net sales growth recorded at 1% and 6%, respectively. Meanwhile, net sales in the subsidiary Hill's Pet Nutrition improved 2.0% year-over-year and accounted for 13% of Colgate-Palmolive's total net sales during the second quarter of 2014. The free research on CL can be downloaded as in PDF format at:
http://www.Investor-Edge.com/CLFreeReport
The leading global consumer products company's selling, general and administrative expenses stood at 34.6% of net sales, down from 35.1% of net sales in the year ago quarter. Colgate-Palmolive Co. expects to incur a one-time income tax charge of $68 million in the third quarter after reassessing its tax position in the wake of an adverse decision in a foreign court regarding a tax position taken in prior years. Furthermore, the changes in Venezuela's foreign exchange system are likely to impact diluted earnings per share by approximately $0.03 per quarter in the second half of 2014.
Ian Cook, Colgate-Palmolive Co.'s Chairman, President and Chief Executive Officer, stated that he was pleased with the second quarter 2014 results marked with broad-based organic sales growth and higher profitability. The chairman asserted that the "2012 Restructuring Program" is progressing smoothly and the company is focused on aggressive measures to fund growth and strategic worldwide pricing initiatives.
He further affirmed that Colgate-Palmolive Co. continues to be a global leader in toothpaste and manual toothbrushes segment with total market share of 44.4% and 33.5%, respectively, on a year-to-date basis. The company's market share in the mouthwash segment improved 80 basis points year-over-year to a record high of 17.2% year to date. Moving ahead Mr. Cook expects another year of strong organic sales growth and gross margin expansion, with per diluted share earnings estimated to grow in the range of 4% to 5% on a dollar basis.
The New York-based consumer-products giant reported $4.35 billion of net sales in second quarter 2014, in line with net sales reported in the prior year quarter but below market estimate of $4.40 billion. Colgate-Palmolive Co.'s GAAP earnings improved to $622 million, or 67 cents per diluted share, from $561 million, or 60 cents diluted per share, in the same quarter a year earlier, below the Bloomberg consensus estimate of $649.62 million, 70 cents per diluted share. Meanwhile, the company's non-GAAP earnings improved to $676 million or $.73 per diluted share from $662 million, or $0.70 per diluted share. During the second quarter, the company's aftertax charges towards "2012 Restructuring Program" stood at $54 million ($0.06 per diluted share. Sign up and read the free analyst's notes on CL at:
http://www.Investor-Edge.com/CL-08082014
Stock Performance
On Thursday, July 31, 2014, after the earnings release, Colgate-Palmolive Co.'s shares fell 4.10% to close the session at $63.40. On the last close, on Thursday, August 07, 2014, the company's shares edged 0.54% lower to end the day at $64.45. The company's shares oscillated between $64.31 and $65.07 during the trading session. A total of 2.80 million shares were traded, which was in line with the three months average volume. Colgate-Palmolive Co.'s shares have advanced 1.08% in the previous three trading sessions, while the stock has fallen by 7.27% in the last one month and 3.95% in the past three months. The stock is trading below its 50-day and 200-day moving averages of $67.82 and $65.37, respectively. The stock traded at a PE ratio of 22.32 and has a Relative Strength Index (RSI) of 32.49. Visit Investor-Edge and access the latest research on CL at:
http://www.Investor-Edge.com/CLEarningsCoverage
Sneak Peek to Corporate Insider Trading
In the last one month, Colgate-Palmolive Co. has reported nine share trading transactions to the U.S. Securities and Exchange Commission (SEC). A total of 35,500 shares worth $1.38 million were purchased during the period, while 37,791 shares worth $2.61 million were sold by the insiders. During the period, Chief Legal Officer and Secretary, Andrew D. Hendry bought 20,000 shares and sold 20,000 shares. Daniel B. Marsili, SVP, Global Human Resources bought and sold 15,500 shares each time, whereas, Chief Technology Officer Patricia Verduin, sold 2,291 shares. Complimentary in-depth research on CL is available at:
http://www.Investor-Edge.com/CLInsiderTrading
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