Financial Performance - Net sales for Q3 2025 increased by 2.0% to $5,131 million compared to $5,033 million in Q3 2024[2] - GAAP EPS rose by 1% to $0.91, while Base Business EPS remained flat at $0.91[3] - Organic sales growth was 0.4%, impacted by a 0.8% decline from exiting the private label pet sales business[3] - Total operating profit for Q3 2025 was $1,059 million, a decrease of 1% compared to Q3 2024[11] - Net income attributable to Colgate-Palmolive Company for Q3 2025 was $735 million, compared to $737 million in Q3 2024[25] - Free cash flow before dividends for the nine months ended September 30, 2025, was $2,358 million, down from $2,461 million in the same period of 2024[31] - Reported GAAP net income for 2025 was $2,951 million, with a diluted earnings per share of $2.67 and an effective tax rate of 23.2%[53] - Non-GAAP net income for 2025 was $3,027 million, with a diluted earnings per share of $2.74, maintaining the same effective tax rate of 23.2%[53] - Reported GAAP net income for 2024 was $2,963 million, with a diluted earnings per share of $2.61 and an effective tax rate of 23.4%[53] - Non-GAAP net income for 2024 was $3,040 million, with a diluted earnings per share of $2.69, reflecting a slight decrease in effective tax rate to 23.1%[53] Profitability Metrics - The gross profit margin decreased by 170 basis points to 59.4% on a GAAP basis[3] - Gross profit margin decreased to 59.4% in Q3 2025 from 61.1% in Q3 2024[25] - Operating profit for Q3 2025 was $1,059 million, slightly down from $1,065 million in Q3 2024, resulting in an operating profit margin of 20.6%[25] - Gross profit for Q3 2025 was $3,049 million, down from $3,074 million in Q3 2024, reflecting a gross profit margin decrease from 61.1% to 59.4%[46] - For the nine months ended September 30, 2025, gross profit was $9,105 million, compared to $9,179 million in the same period of 2024, with a gross profit margin of 60.1%[51] Sales Performance by Region - North America experienced a net sales decline of 0.4%, while Europe saw an increase of 7.6%[9] - North America experienced a sales decline of 0.4%, with organic sales down 0.5% and volume also down 0.5%[38] - Europe showed strong performance with a sales increase of 7.6%, organic sales growth of 1.2%, and volume growth of 0.8%[38] - Africa/Eurasia reported a sales increase of 6.8%, with organic sales growth of 6.2% and volume decline of 1.1%[38] - Emerging Markets reported a sales increase of 1.6%, with organic sales growth of 1.0% despite a volume decline of 2.6%[38] Strategic Initiatives - The company is implementing a new 2030 strategy aimed at accelerating growth and enhancing innovation capabilities[5] - The Strategic Growth and Productivity Program is designed to support organizational structure and achieve consistent earnings per share growth over the long term[5] - The acquisition of the Prime100 pet food business positively impacted reported volume by 0.4% for Total Company[39] Expenses and Costs - Advertising expenses for Q3 2025 were $674 million, down from $694 million in Q3 2024[25] - Selling, general and administrative expenses for Q3 2025 were $1,971 million, slightly down from $1,979 million in Q3 2024[46] - The company incurred $65 million in ERISA litigation costs, which did not affect the diluted earnings per share[53] - Acquisition-related costs amounted to $9 million, contributing minimally to the overall financial performance[53] Taxation - The effective tax rate for Q3 2025 was 22.8%, up from 21.3% in Q3 2024[25] - The effective tax rate for the company was calculated based on applicable tax laws and statutory rates in relevant jurisdictions[54] - The impact of non-GAAP items on the effective tax rate reflects the difference calculated with and without these adjustments[54]

Core Insights - Colgate-Palmolive reported an increase in sales during the third quarter, driven by higher prices that compensated for a decline in sales volumes [1] Sales Performance - The company experienced a rise in sales, indicating resilience in pricing strategies despite volume challenges [1]

Colgate-Palmolive. reported third-quarter earnings above Wall Street’s consensus, driven by resilient consumer demand in Latin American https://t.co/A8Us5YSaXv ...

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Earnings Report - Colgate-Palmolive Company is set to release its third-quarter earnings results on October 31, with analysts expecting earnings of 89 cents per share, a decrease from 91 cents per share in the same period last year [1] - The consensus estimate for quarterly revenue is $5.13 billion, up from $5.03 billion a year earlier [1] Previous Quarter Performance - In the second quarter, Colgate-Palmolive reported adjusted earnings per share of 92 cents, surpassing the analyst consensus estimate of 89 cents [2] - Following the second-quarter report, Colgate-Palmolive shares increased by 1% to close at $76.51 [2] Analyst Ratings and Price Targets - Raymond James analyst Olivia Tong maintained an Outperform rating but reduced the price target from $105 to $95 [4] - JP Morgan analyst Andrea Teixeira kept an Overweight rating while lowering the price target from $95 to $88 [4] - Piper Sandler analyst Michael Lavery assigned a Neutral rating with a price target of $84 [4] - Barclays analyst Lauren Lieberman maintained an Equal-Weight rating and cut the price target from $87 to $82 [4] - Morgan Stanley analyst Dara Mohsenian upheld an Overweight rating and decreased the price target from $104 to $96 [4]

Core Insights - Diamond Hill Capital's "Select Fund" underperformed the Russell 3000 Index in Q3 2025, returning 4.98% compared to the index's 8% gain [1] - The fund initiated four new positions in Q3, including Colgate-Palmolive Company, indicating a belief in the long-term growth potential of certain undervalued companies [3] Company Performance - Colgate-Palmolive Company (NYSE:CL) experienced a one-month return of -2.91% and a 52-week loss of 18.86%, closing at $75.73 per share with a market capitalization of $61.207 billion on October 29, 2025 [2] - Despite the overall market rally, Colgate-Palmolive's stock is not among the top 30 most popular stocks among hedge funds, with 59 hedge fund portfolios holding it at the end of Q2 2025, down from 65 in the previous quarter [4] Investment Outlook - JPMorgan has cut Colgate-Palmolive's price target to $88 while maintaining an overweight rating, suggesting a cautious but positive outlook [4] - The investment community acknowledges Colgate-Palmolive's potential but sees greater upside in certain AI stocks, indicating a competitive investment landscape [4]

Performance Overview - The Dividend Kings experienced a decline of 1.58% in September, underperforming the SPDR S&P 500 ETF (SPY) by 4.47% [1] Current Month Performance - The performance in the current month is not showing improvement compared to previous results [1]

Core Insights - Colgate-Palmolive Company (CL) is anticipated to report a decline in earnings for Q3 2025, with revenues expected to reach $5.1 billion, reflecting a 2% increase year-over-year [1][9] Financial Performance - The consensus estimate for CL's earnings is set at 89 cents per share, indicating a 2.2% decline compared to the previous year [2][9] - In the last reported quarter, CL exceeded the consensus earnings estimate by 3.4%, with an average earnings surprise of 3.7% over the last four quarters [2] Earnings Prediction Model - The current model indicates a negative Earnings ESP of -0.61% for Colgate, with a Zacks Rank of 4 (Sell), suggesting a lower likelihood of an earnings beat this season [3] Business Momentum and Growth Drivers - Colgate's Q3 performance is expected to benefit from strong business momentum, driven by pricing strategies, funding-the-growth initiatives, and productivity improvements [4][9] - The company's focus on science-based innovation, such as the relaunch of Colgate Total and other product lines, is supporting category growth and brand penetration [5] Sales and Margin Expectations - Projected sales growth for Q3 2025 is 2.9%, with organic sales growth of 2.1%. Volume is expected to decline by 0.1%, offset by pricing gains of 2.2% [6] - Gross margin is predicted to expand by 60 basis points to 60.7% for Q3 2025, supported by strong pricing and revenue growth management initiatives [7] Regional Performance Challenges - Colgate's performance may face challenges from inflationary pressures, foreign currency fluctuations, and weak performance in key regions, particularly in Latin America [8][10] Market Performance and Valuation - Colgate's shares have decreased by 10.4% over the past three months, compared to a 5.1% decline in the industry [11] - The company trades at a forward P/E multiple of 20.18X, which is above the industry average of 19.05X and below the S&P 500's average of 23.69X, indicating a relatively high valuation [11]

Core Viewpoint - The article presents a contrarian viewpoint on Colgate-Palmolive (NYSE: CL), marking the first "sell" rating since November 2021, indicating a shift in sentiment towards the stock [1]. Group 1: Investment Strategy - The focus is on identifying undervalued stocks with a balance of risk and reward, emphasizing the importance of understanding ownership to limit risks while aiming for decent to high upside [1]. - The belief is that the best investment ideas are often the simplest, and a contrarian approach can yield better results [1].

Colgate-Palmolive Company (NYSE: CL ) is one of the highest-quality and truly global large-scale consumer staple businesses, and when the stock falls by nearly 20% over a period of just one year, it is time to examine the causes for that and see ifVladimir Dimitrov, CFA is a former strategy consultant within the field of brand and intangible assets valuation. During his career in the City of London he has been working with some of the largest global brands within the technology, telecom and banking sectors. ...