Analysts Have Made A Financial Statement On Colgate-Palmolive Company's (NYSE:CL) First-Quarter Report

Investors in Colgate-Palmolive Company (NYSE:CL) had a good week, as its shares rose 2.4% to close at US$90.49 following the release of its quarterly results. Results overall were respectable, with statutory earnings of US$0.83 per share roughly in line with what the analysts had forecast. Revenues of US$5.1b came in 2.1% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Colgate-Palmolive

Taking into account the latest results, the most recent consensus for Colgate-Palmolive from 20 analysts is for revenues of US$20.2b in 2024. If met, it would imply a satisfactory 2.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 9.7% to US$3.49. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.2b and earnings per share (EPS) of US$3.48 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$95.77. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Colgate-Palmolive analyst has a price target of US$105 per share, while the most pessimistic values it at US$81.00. This is a very narrow spread of estimates, implying either that Colgate-Palmolive is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Colgate-Palmolive's revenue growth is expected to slow, with the forecast 2.9% annualised growth rate until the end of 2024 being well below the historical 5.0% p.a. growth over the last five years. Compare this to the 14 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.4% per year. So it's pretty clear that, while Colgate-Palmolive's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Colgate-Palmolive analysts - going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Colgate-Palmolive you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.