Analysts Are Updating Their Colgate-Palmolive Company (NYSE:CL) Estimates After Its Third-Quarter Results
It's been a good week for Colgate-Palmolive Company (NYSE:CL) shareholders, because the company has just released its latest third-quarter results, and the shares gained 4.7% to US$97.43. The result was positive overall - although revenues of US$5.4b were in line with what the analysts predicted, Colgate-Palmolive surprised by delivering a statutory profit of US$0.94 per share, modestly greater than expected. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the 18 analysts covering Colgate-Palmolive are now predicting revenues of US$21.9b in 2027. If met, this would reflect a satisfactory 2.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 57% to US$4.05. In the lead-up to this report, the analysts had been modelling revenues of US$22.1b and earnings per share (EPS) of US$3.93 in 2027. So the consensus seems to have become somewhat more optimistic on Colgate-Palmolive's earnings potential following these results.
Check out our latest analysis for Colgate-Palmolive
There's been no major changes to the consensus price target of US$102, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Colgate-Palmolive analyst has a price target of US$112 per share, while the most pessimistic values it at US$88.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Colgate-Palmolive's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 2.3% growth on an annualised basis. This is compared to a historical growth rate of 4.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Colgate-Palmolive.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Colgate-Palmolive following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Colgate-Palmolive's revenue is expected to perform worse than the wider 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Colgate-Palmolive analysts - going out to 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - Colgate-Palmolive has 3 warning signs we think you should be aware of.
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