Colgate-Palmolive (CL) Reports Earnings Tomorrow: What To Expect

Consumer products company Colgate-Palmolive (NYSE:CL) will be reporting earnings tomorrow before the bell. Here's what to look for.

Colgate-Palmolive beat analysts' revenue expectations by 2.1% last quarter, reporting revenues of $5.07 billion, up 6.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' organic revenue growth estimates and a decent beat of analysts' gross margin estimates.

Is Colgate-Palmolive a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Colgate-Palmolive's revenue to grow 3.8% year on year to $5.01 billion, slowing from the 7.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.87 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Colgate-Palmolive has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2% on average.

Looking at Colgate-Palmolive's peers in the consumer staples segment, some have already reported their Q2 results, giving us a hint as to what we can expect. WD-40 delivered year-on-year revenue growth of 9.4%, beating analysts' expectations by 6.3%, and Kimberly-Clark reported a revenue decline of 2%, falling short of estimates by 1.3%. WD-40 traded up 4% following the results while Kimberly-Clark was down 2.5%.

Read our full analysis of WD-40's results here and Kimberly-Clark's results here.

Investors in the consumer staples segment have had steady hands going into earnings, with share prices flat over the last month. Colgate-Palmolive is down 1.1% during the same time and is heading into earnings with an average analyst price target of $102.8 (compared to the current share price of $97.13).

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