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%) |
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) |
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.
