Colgate (CL) Fights On: Stock Surges Over 12% Year To Date
Zacks Investment Research | Sep 05, 2016 10:05PM ET
Seems like there is no looking back for New York City-based Colgate-Palmolive Co. (NYSE:CL) as the stock keeps climbing the charts, come what may. This leading consumer staples stock has surged over 12% year to date.
Colgate is in good shape given its continued focus on product innovation, along with globally recognized brands and presence in both developed and emerging economies, which enables it to take advantage of growth opportunities and boost profitability. Further, the company’s international brand recognition and innovative strategies underscore its inherent strength.
Further, Colgate is leaving no stone unturned as it continues to progress well with its savings programs, with both its Global Growth and Efficiency Program or 2012 Restructuring Program and Funding the Growth undertakings reaping results. These programs are aimed at reducing structural costs, standardizing processes, opening new distribution centers, improving decision making, enhancing market share and thereby contributing significantly to the improvement of gross and operating margins over the long term.
The effect of these cost savings’ plans was visible from the gross margin growth witnessed in second-quarter 2016, which also exceeded the milestone 60% mark that was achieved in the preceding quarter. Further, the company continued with its solid earnings trend as second-quarter earnings topped estimates, while remaining flat year over year despite the prevalence of strong currency headwinds, the deconsolidation of Venezuelan operations and other tough economic conditions. In fact, the bottom line rose by double digits on a currency-neutral basis while organic sales grew 4.5%.
COLGATE PALMOLI Price, Consensus and EPS Surprise
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