Benzinga | Apr 29, 2021 10:21AM EDT

Colgate-Palmolive Earnings Preview

On Friday, April 30, Colgate-Palmolive (NYSE:CL) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Colgate-Palmolive EPS is expected to be around $0.79, according to sell-side analysts. Sales will likely be near $4.26 billion. In the same quarter last year, Colgate-Palmolive announced EPS of $0.75 on revenue of $4.10 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Friday, earnings would be up 5.33%. Sales would be up 3.98% on a year-over-year basis. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.76 0.70 0.69 0.74EPS Actual 0.77 0.79 0.74 0.75Revenue Estimate 4.14 B 3.98 B 3.78 B 4.09 BRevenue Actual 4.32 B 4.15 B 3.90 B 4.10 B

Stock Performance

Over the last 52-week period, shares are up 15.95%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Colgate-Palmolive is scheduled to hold the call at 08:30:00 ET and can be accessed here.