NYSE$CL

Colgate-Palmolive · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Colgate's performance accelerated with double-digit increases in operating profit, net income, and earnings per share despite COVID-19 challenges.

Colgate-Palmolive Company reported strong Q3 2020 results, with net sales increasing by 5.5% and organic sales growing by 7.5%. The company saw double-digit increases in operating profit, net income, and earnings per share. Premium innovation and eCommerce strength, particularly in the Hill's business, drove growth across all product categories.

  • Net sales grew 5.5% and organic sales grew 7.5% driven by volume growth and higher pricing.
  • Operating profit, net income, and earnings per share saw double-digit increases.
  • Premium innovation is driving growth across all product categories.
  • eCommerce continues to show strength, led by Hill's business.

Headline financials

Total Revenue

$4.15B

Previous: $3.93B+5.7%
EPS (adj)

$0.79

Previous: $0.71+11.3%
Free Cash Flow

$698M

Previous: $578M+20.8%
Net Income

$698M

Previous: $578M+20.8%
Operating Income

$1.02B

Previous: $856M+18.9%
Gross Profit

$2.54B

Previous: $2.32B+9.7%
Cash & Equivalents

$989M

Previous: $948M+4.3%
Total Assets

$15.5B

Previous: $15B+2.9%
Stock-Based Comp

$53M

Previous: $49M+8.2%

Revenue & EPS history

Colgate · Revenue · Quarterly

$4.15B

Q3 2020+5.7%vs Q3 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Colgate · $4.15B total across 6 segments · Q3 2020

  • OPHC North America
    $923M
  • OPHC Latin America
    $837M
  • OPHC Asia Pacific
    $722M
  • OPHC Europe
    $712M
  • Pet Nutrition
    $704M
  • OPHC Africa/Eurasia
    $255M

Forward guidance

The Company expects 2020 net sales and organic sales to both be up mid-single digits, with organic sales up at the high end of that range. On a GAAP basis, the Company expects gross margin expansion, increased advertising investment and double-digit earnings-per-share growth. On a non-GAAP (Base Business) basis, the Company expects gross margin expansion, increased advertising investment and 6% to 7% earnings-per-share growth.

Tailwinds

  • Net sales are expected to increase by mid-single digits.
  • Organic sales are expected to increase by mid-single digits, with organic sales up at the high end of that range.
  • Gross margin expansion is expected on a GAAP basis.
  • Increased advertising investment is expected on a GAAP basis.
  • Double-digit earnings-per-share growth is expected on a GAAP basis.

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 Q3 2020

Historical avgQ3 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro