Colgate mais uma melhor q o esperado
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Colgate mais uma melhor q o esperado
CHICAGO, April 17 (Reuters) - Colgate-Palmolive Co. CL.N on Thursday posted its 28th straight quarter of profit growth, helped by new products like Simply White tooth whitener and improvement in the euro against the dollar.
Colgate said strong sales growth and improved margins helped it spend more on advertising to try to gain market share and promote new products.
But shares in the company, which also makes Ajax cleaner, Irish Spring soap and a host of other products, dipped after an analyst lowered her rating on the stock to "in-line" from "outperform," saying the stock had hit her price target.
"Our downgrade of Colgate is primarily based on valuation," said Smith Barney analyst Wendy Nicholson in a research note.
She said Colgate's fundamentals remain strong, but it is "unrealistic" to expect further growth in its shares beyond her target price of $57. She added that there is concern that sales and margin growth could slow in coming quarters.
Colgate stock fell 60 cents, or 1 percent, to finish at $55.75 on Thursday New York Stock Exchange trade.
While many of its competitors have tried to grow through acquisitions, Colgate has released a steady stream of new products and focused on its core business to post some of the most consistent earnings growth in the consumer products sector.
"Colgate is not a company that's distracted by acquisitions," said Banc of America Securities analyst William Steele. "They're not distracted by the fad of the day. They're not distracted by what anyone else is doing." He rates the stock "neutral."
Colgate said first-quarter earnings rose to $324 million, or 56 cents a share, from $289.7 million, or 49 cents a share, a year earlier.
Analysts on average had forecast a profit of 55 cents a share, according to research firm Thomson First Call.
Sales rose 7 percent to $2.35 billion. Volume, which excludes currency and price fluctuations, increased 6 percent, with every unit adding to growth, the company said.
"What drove the sales and the profit line was Europe and particularly European foreign currency." said CIBC World Markets analyst Joseph Altobello.
The stronger euro meant European sales got a boost when they were translated into dollars. But some analysts argued that weakness in Latin American currencies offset the benefit from the euro.
Unit volume rose 6 percent in North America, but revenue rose only 2 percent as the company invested more in promotional programs, which are deducted from sales under accounting standards, and in advertising.
Colgate has faced tough competition from Procter & Gamble Co. PG.N and others, especially in its key oral care market.
"I think that the heavy level in advertising spending really speaks to the intense level of competition Colgate is seeing in their markets, especially in the U.S.," Altobello said.
In Europe, which accounted for 23 percent of the company's sales, unit volume rose 3 percent, and dollar sales jumped 19.5 percent.
Unit volume in Latin America grew 6.5 percent, although dollar sales fell 7 percent due to continued currency weakness in the region.
Unit volume grew more than expected at 8.5 percent in Africa and Asia, with dollar sales up 14.5 percent.
Colgate said strong sales growth and improved margins helped it spend more on advertising to try to gain market share and promote new products.
But shares in the company, which also makes Ajax cleaner, Irish Spring soap and a host of other products, dipped after an analyst lowered her rating on the stock to "in-line" from "outperform," saying the stock had hit her price target.
"Our downgrade of Colgate is primarily based on valuation," said Smith Barney analyst Wendy Nicholson in a research note.
She said Colgate's fundamentals remain strong, but it is "unrealistic" to expect further growth in its shares beyond her target price of $57. She added that there is concern that sales and margin growth could slow in coming quarters.
Colgate stock fell 60 cents, or 1 percent, to finish at $55.75 on Thursday New York Stock Exchange trade.
While many of its competitors have tried to grow through acquisitions, Colgate has released a steady stream of new products and focused on its core business to post some of the most consistent earnings growth in the consumer products sector.
"Colgate is not a company that's distracted by acquisitions," said Banc of America Securities analyst William Steele. "They're not distracted by the fad of the day. They're not distracted by what anyone else is doing." He rates the stock "neutral."
Colgate said first-quarter earnings rose to $324 million, or 56 cents a share, from $289.7 million, or 49 cents a share, a year earlier.
Analysts on average had forecast a profit of 55 cents a share, according to research firm Thomson First Call.
Sales rose 7 percent to $2.35 billion. Volume, which excludes currency and price fluctuations, increased 6 percent, with every unit adding to growth, the company said.
"What drove the sales and the profit line was Europe and particularly European foreign currency." said CIBC World Markets analyst Joseph Altobello.
The stronger euro meant European sales got a boost when they were translated into dollars. But some analysts argued that weakness in Latin American currencies offset the benefit from the euro.
Unit volume rose 6 percent in North America, but revenue rose only 2 percent as the company invested more in promotional programs, which are deducted from sales under accounting standards, and in advertising.
Colgate has faced tough competition from Procter & Gamble Co. PG.N and others, especially in its key oral care market.
"I think that the heavy level in advertising spending really speaks to the intense level of competition Colgate is seeing in their markets, especially in the U.S.," Altobello said.
In Europe, which accounted for 23 percent of the company's sales, unit volume rose 3 percent, and dollar sales jumped 19.5 percent.
Unit volume in Latin America grew 6.5 percent, although dollar sales fell 7 percent due to continued currency weakness in the region.
Unit volume grew more than expected at 8.5 percent in Africa and Asia, with dollar sales up 14.5 percent.
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