NYSE$CL

Colgate-Palmolive · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Colgate-Palmolive's Q2 2020 earnings were announced, demonstrating resilience amidst the COVID-19 pandemic, with organic sales growth driven by North America and Hill's, while facing challenges from foreign exchange impacts.

Colgate-Palmolive reported a 1.0% increase in net sales and a 5.5% increase in organic sales for Q2 2020. GAAP EPS grew by 9% to $0.74. The company experienced strong growth in North America and Hill's, but faced challenges due to foreign exchange impacts. Due to continued uncertainty, the company has decided not to reinstate financial guidance for 2020 at this time.

  • Net sales increased by 1.0%, while organic sales grew by 5.5%.
  • GAAP EPS increased by 9% to $0.74.
  • Base Business EPS grew by 3% to $0.74.
  • The company's leadership in toothpaste and manual toothbrushes continued with global market shares of 40.0% and 31.0%, respectively, year to date.

Headline financials

Total Revenue

$3.9B

Previous: $3.87B+0.8%
EPS (adj)

$0.74

Previous: $0.72+2.8%
Free Cash Flow

$635M

Previous: $586M+8.4%
Net Income

$635M

Previous: $586M+8.4%
Operating Income

$946M

Previous: $888M+6.5%
Gross Profit

$2.37B

Previous: $2.31B+2.6%
Cash & Equivalents

$997M

Previous: $863M+15.5%
Total Assets

$15.1B

Previous: $13.2B+15.1%
Stock-Based Comp

$16M

Previous: $17M-5.9%

Revenue & EPS history

Colgate · Revenue · Quarterly

$3.9B

Q2 2020+0.8%vs Q2 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Colgate · $3.9B total across 6 segments · Q2 2020

  • OPHC North America
    $949M
  • OPHC Latin America
    $805M
  • Pet Nutrition
    $672M
  • OPHC Asia Pacific
    $625M
  • OPHC Europe
    $617M
  • OPHC Africa/Eurasia
    $229M

Forward guidance

The company anticipates a mid-single digit negative impact on net sales for the year from foreign exchange, based on current spot rates. Given the continued uncertainty related to the impact of the virus and government actions to stem the virus, including macroeconomic impacts, the company has decided not to reinstate its financial guidance for 2020 at this time.

Headwinds

  • Mid-single digit negative impact on net sales for the year from foreign exchange
  • Continued uncertainty related to the impact of the virus
  • Government actions to stem the virus
  • Including macroeconomic impacts
  • Decided not to reinstate our financial guidance for 2020 at this time

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.4%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.0%

Avg return

30 days after

42%

31 / 73 earnings

Positive

+8.0%

Q4 2025

Best reaction

-9.3%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.2%+3.3%+5.7%
Q4 2025+8.0%+10.7%+16.3%
Q3 2025-2.0%+0.5%+5.1%
Q2 2025-0.4%+0.9%+0.3%
Q1 2025+1.3%-0.6%-0.1%
Q4 2024-4.6%+1.9%+1.8%
Q3 2024-4.0%-5.1%-4.8%
Q2 2024+4.5%+2.8%+8.0%
Q1 2024+1.3%+2.9%+4.5%
Q4 2023+3.4%+3.7%+6.2%
Q3 2023+1.1%+2.5%+5.8%
Q2 2023-1.1%+0.6%-4.3%
Q1 2023+3.5%+4.3%-2.2%
Q4 2022-3.5%-0.7%-3.2%
Q3 2022+0.8%-0.6%+4.8%
Q2 2022+2.4%+2.8%+0.0%
Q1 2022-7.4%-5.2%-2.9%
Q4 2021-0.3%+0.1%-5.5%
Q3 2021-1.2%+0.5%+0.2%
Q2 2021-4.8%-6.3%-7.3%
Q1 2021+1.6%+1.9%+5.0%
Q4 2020-0.8%-0.3%-5.0%
Q3 2020+4.6%+9.4%+10.7%
Q2 2020-0.4%-0.9%+3.3%
Q1 2020-1.1%-3.5%+2.9%
Q4 2019+7.9%+9.0%-2.7%
Q3 2019-4.7%-3.0%-1.1%
Q2 2019+5.1%-0.3%+0.4%
Q1 2019+3.9%+3.8%+3.7%
Q4 2018+0.9%+2.8%+7.6%
Q3 2018-9.3%-6.7%-3.2%
Q2 2018-0.7%-1.3%-0.1%
Q1 2018-2.0%-5.2%-4.3%
Q4 2017-4.6%-4.0%-9.1%
Q3 2017-2.8%-0.9%+1.1%
Q2 2017-0.3%+1.3%-1.5%
Q1 2017-2.0%-3.0%+2.9%
Q4 2016-5.4%-5.2%+7.5%
Q3 2016-0.1%-0.4%-6.6%
Q2 2016+1.6%+2.2%+1.6%
Q1 2016+2.3%
Q4 2015+1.8%
Q3 2015-2.5%
Q2 2015-1.3%
Q1 2015-1.2%
Q4 2014+3.7%
Q3 2014+1.6%
Q2 2014-3.3%
Q1 2014+2.2%
Q4 2013-0.6%
Q3 2013+0.2%
Q2 2013+3.0%
Q1 2013+0.9%
Q4 2012-0.9%
Q3 2012-2.5%
Q2 2012+4.8%
Q1 2012-1.2%
Q4 2011+0.2%
Q3 2011+0.8%
Q2 2011-1.3%
Q1 2011-0.9%
Q4 2010-0.6%
Q3 2010+2.1%
Q2 2010-5.8%
Q1 2010-1.1%
Q1 2009-1.1%
Q4 2009-0.0%
Q3 2008+1.2%
Q3 2009+1.2%
Q2 2009-4.5%
Q4 2007-4.5%
Q2 2008-4.5%
Q4 2008-4.5%

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