From 24/7 Wall St. · Rich Duprey · · 50s
Colgate-Palmolive Earnings Risk
Colgate-Palmolive's 21% rally faces U.S. market weakness and oil costs ahead of Oct 30 earnings.
In brief
Colgate-Palmolive's 21% rally faces U.S. market weakness and oil costs ahead of Oct 30 earnings. Colgate-Palmolive's stock price premium may collapse if North American sales continue declining and oil prices rise beyond $90 per barrel. Originally reported by 24/7 Wall St..
Colgate-Palmolive Earnings Report
Colgate-Palmolive reports third-quarter results on Friday, Oct. 30.
21% Year-to-Date Rally
The stock has risen 21.87% year to date despite North American sales shrinking for four straight quarters.
Strong Q3 Results
Colgate beat EPS estimates with $0.99 Base Business EPS on $5.36B revenue.
North American Decline
Net sales fell 3.0% in North America, the fourth straight quarterly decline.
Margin Pressure
Management warned oil prices could reach $90 per barrel and hurt fourth-quarter gross margins.
Earnings Premium Risk
The stock trades at 24x full-year 2026 EPS consensus with only 1% to 4% organic growth expected.
The key point
Colgate-Palmolive's stock price premium may collapse if North American sales continue declining and oil prices rise beyond $90 per barrel.
