Analyst Note
| Erin Lash, CFA |Despite solid sales (up 5.5% on an organic basis, reflecting a 2% bump from volumes and 3.5% from higher prices and favorable mix) and profit growth (adjusted gross margins expanded 120 basis points to 60.8%) coming out of Colgate’s second-quarter earnings release, the market was more interested in its reluctance to reinstate forward guidance, with shares barely budging on the print. However, we think investors would be better served by assessing its underlying performance, as opposed to putting outsize weight behind its external forecasting ability (or lack thereof).