Colgate-Palmolive(CL) The Motley Fool·2025-01-31 22:49Core Insights - Colgate-Palmolive's stock declined by 4.6% following a fourth-quarter earnings report that missed revenue expectations and provided a weak outlook [1] Revenue Performance - Revenue growth decelerated due to the expiration of previous price hikes, with organic sales increasing by 4.3% but overall revenue decreasing by 0.1% to 4.99 billion [2] - The strong dollar negatively impacted revenue, as the company generates a significant portion of its income from international markets [2] Sales and Market Position - Volume sales increased by 2.5% across all regions, while overall pricing rose by 1.8% [3] - Colgate-Palmolive maintained a leading position in the global toothpaste market with a 41.4% share and 32.2% in manual toothbrushes [3] Profitability and Earnings - Base business earnings per share improved from 0.91, exceeding expectations of $0.89 [3] - The gross margin increased by 70 basis points to 60.3%, indicating operational strength [3] Future Outlook - The company anticipates flat revenue for fiscal 2025, citing a mid-single-digit negative impact from currency exchange rates [4] - Organic sales are projected to align with long-term targets of 3% to 5%, alongside expectations for gross profit margin expansion and low- to mid-single-digit adjusted earnings-per-share growth [4] Market Reaction - Despite disappointing revenue figures, the sell-off in stock could present a buying opportunity for income investors, considering the challenges posed by currency fluctuations [5]