On Wednesday, Colgate-Palmolive (NYSE:CL) released third-quarter 2006 earnings for the period ended Sept. 30.

  • Revenues up 8%, with 1% owed to foreign exchange effects.
  • Q3 results include $0.04 per share in stock compensation charges (not included in 2005) and $0.10 in restructuring charges.
  • Operating and net margins drop on a GAAP basis but improve if you pretend that restructuring and stock compensation costs don't exist.

(Figures in millions except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$3,080

$3,144

$2,912

8.0%

Net Profit

--

$344

$347

(0.9%)

EPS

$0.72*

$0.63

$0.63

0%

Diluted Shares

550

554

(0.7%)

*Estimates don't include restructuring charges.

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

54.98%

54.18%

0.80

Operating Margin

17.48%

20.75%

(3.27)

Net Margin

10.95%

11.92%

(0.97)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$503

$376

33.6%

Accounts Rec.

$1,446

$1,337

8.2%

Inventory

$1,002

$890

12.5%



Liabilities

Q3 2006

Q3 2005

Change

Total Debt

$3,578

$3,565

0.4%



Learn the ways of the balance sheet.

Cash Flow Highlights

Q3 2006

Q3 2005

Change

Cash From Ops.

$1,370

$1,305

4.9%

Capital Expenditures

$252

$258

(2.3%)

Free Cash Flow

$1,118

$1,048

6.7%



Find out why Fools always follow the money.

Related Companies:

  • Procter & Gamble (NYSE:PG)
  • Church & Dwight (NYSE:CHD)
  • Clorox (NYSE:CLX)

Colgate-Palmolive is a Motley Fool Inside Value pick. For a look at the reasons behind the recommendation, as well as instruction in valuation, an all-access pass is free for 30 days.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Seth Jayson had no positions in any company mentioned here. Fool rules are here.