Citi dropped its price target on Colgate to $79 per share as Citi expects CL's earnings to fall as investments increase.
Colgate sued GlaxoSmithKline in Manhattan federal court seeking a court order that its packaging for Colgate toothpaste does not infringe GSK's Aquafresh trademarks. GSK countersued a few hours later, seeking to stop the alleged infringement.
Although Cl reported net income rose 7% to $603 million, its worldwide sales growth of 2% and organic sales growth of 3% disappointed investors. Analysts had expected revenue of $3.9 billion compared to a reported $3.8 billion. CL also said it would take a larger hit from the Venezuelan currency devaluation.
Colgate maintained its regular quarterly dividend of 53 cents per share, maintaining its dividend yield of roughly 2.6%.
Colgate CEO Ian Cook says he expects to see growth margin rise to the mid 60% range from 59% this year. This change will happen over the next five years.
CL announced it has received approval to delist from the NYSE Euronext Amsterdam exchange. The company intends to delist its stock from all European exchanges. Its common stock will remain traded on the New York Stock Exchange.
Colgate's first quarter earnings were down 30% at $357 million due to a one-time charge associated with the Venezuelan currency devaluation. The company's global sales were up 6% in the quarter ending March 2010.
Colgate raised its Q2 dividend by 20% to 53 cents a share from 44 cents, payable May 14 to shareholders of record on April 26. The board also authorized the repurchase of 40 million common shares over the next two years.
Colgate's 2009 fourth quarter net income rose 27% to $631 million, compared to $497 million in the year prior. Revenue was up 11% to $4.08 billion. Sales were up 11% to $1.08 billion.
Goldman added Colgate to its "conviction buy" list, predicting 4th quarter profit will exceed consensus expectations. Goldman said sales volume could grow 6% from roughly flat, boosted by Colgate's strong lineup of new products, increased investment in CL's brands, and strength of sales in emerging markets.
Bank of America downgraded Colgate to "neutral" from "buy" on valuation, saying the company would not outperform its peer group this year. However, it raised its price target on Colgate by $1 to $87.
Consumer products companies fell as Venezuela announced it would devalue its currency for the first time in five years. President Hugo Chavez said it would nationalize any business that raises its prices in response to the devaluation. Colgate derives 6% of its total sales from Venezuela.
JP Morgan lowered its rating on Colgate to neutral from overweight based on its improvement in stock price in response to the company's restructuring program (completed in 2005). The market seems to have already rewarded the company for improved top-line momentum and best-in-class results.
Marico Ltd bought the hair-styling brand 'Code 10' from Colgate. The financial terms of the agreement were not disclosed.
Colgate could potentially merge with UK firm Reckitt Benckiser, although many analysts treated the rumors with skepticism. Any deal ould be a merger of equals, with Reckitt valued at $37.2 billion and Colgate at $41.2 billion.
Colgate-Palmolive Co. (CL) reported a better-than-expected 18% rise in third-quarter profit.
Analysts at Goldman Sachs expect increased marketing and growth in emerging markets to boost volume for the consumer products company and the company's overall business, citing an $85/share price target
Stephen Patrick, Colgate's CFO, sold 28,337 shares for $2 million ($71.39 per share). This is the third major insider sale, following Jill Conway (a director) and Ronald Martin (VP).
Colgate's net income rose to $507.9 million from $466.5 million a year earlier, aided by cost cutting and increased pricing. Sales fell 5.5% to $3.5 billion and unit volume fell 0.5%.
Following price cuts of between 4% and 20% by rivals Unilever and P&G, Colgate raised prices on some its brands. More price hikes are expected in coming months.
Colgate CEO Ian M. Cook received almost $11 million in compensation in 2008, up 31% over the previous year.
GE said it won a $300 million contract to supply equipment for the construction of a natural gas pipeline across China. When completed in the next six years, the pipelin will stretch roughly 20,000 km and bring $600 million in revenue to GE. The pipeline is being built by PetroChina.
Colgate reported fourth quarter profit rose 20%, beating Wall Street expectations. The company said it was on track to meet forecasts for 2009 despite the economic slowdown.
Despite troubles in the broader economy, Colgate-Palmolive reported earnings of $499.9 million, or 94 cents per share, up from $420.1 million, or 77 cents per share last year.
In the worst month of trading since the 1989 stock market collapse, all major stocks took a hit.
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CL Reports 2Q FY2008 Earnings
Colgate-Palmolive has released its Q1 FY2008 earnings, exibiting stead growth in all areas except Home Care, which remained flat for the quarter.
News breaks that a number of fake Colgate-branded toothpaste branded products from South Africa have been dessiminated in the US. The fake toothpaste products contain a toxic chemical commonly found in engine anti-freeze solutions. Investors sell Colgate stock due to a potential negative affect on Colgate's core products and the company's own lackluster response.
A 9% sell-off in the Chinese stock market roils markets world-wide. The New York Stock Exchange suffers a major sell-off; despite recent highs, Colgate-Palmolive investors join the global selling frenzy.
Colgate's stock rises on the heels of its earnings report which beats analysts expections. Colgate's profit is driven primarily by strong global growth.
