CEO, Kobe, Wallace discussed on MAD MONEY W/ JIM CRAMER
Told us that organic growth will come at the high end of the previous forecast. Stock China to seventy five however Wall Street started feeling more bullish about the economy landfalls. I've told you over and over again. So investors rotated they swapped out a defensive sock like colgate and they put their money into more cyclical names. It didn't help that when the company report November numbers were just okay. While the headline results were basically in line and management raised their organic growth forecasts slightly bunch of analysts took issue with the software than expected margin still stuck bottomed in a few days later. But it was in the mid sixties. Now you got a little bit of levitation. The run up to the end of the year and the first couple of weeks January but Kobe can really come roaring back until it reported. Its most recent end stunning screaming stunning results two weeks ago. Oh boy. This quarter was different while the line. The sales hotline much expected of five point five year over year price. It was up one point. Five percent global unify a five point five percent the organic sales rising and outstanding five percent. And you've got some nice margin expansion. Because that's the holy grail vegetable matter gave me very bullish forecast for two thousand twenty. No Wallace not met the new. Ceo Guided for three to five percent gaining sales. But this year. I think he's the only one in this whole. Sumer Package Group that I have not met Abe bricks more gross margin expansion two and mid to high single digit earnings will furry impressive. How did they pull it off? If you're struggling to generate growth colgate became a much more consistent opera it's a good earner get. They made that happen by investing in the brands and forcing price increases to maintain their margins. Wasn't doesn't hurt. Guess what the weekly which gives them a lot more breathing than the rest of the world. This is the ultimate weak dollar. Play right here. There are two more factors work since this fellow Wallace took over. Ceo last year the companies made a series of acquisitions. They brought this to Largo for large. I'll get it right for Laura's skincare business. Won't I really love the skincare business because I follow US water? This is a piece of it. This is the premium tight aging brand. And it's part of a broader strategy. We're doubling down on higher margin products. Florida deals already giving their sales a nice boost. It was really smart then last month. They NASA sport transaction pip hello products. That's rattling going. Toothpaste mouthwash brand. They're really getting a lot of toothpaste business. I used to use this sense and I know these really good. This is a real good book. The second factor Kobe's long been a leader in sustainability frears. No one on Wall Street really cared about this stuff. Think water conservation reducing plastic packaging. Now though there's a lot of money floating around that specifically earmarked for sustainable investments and so matters so. Can The stock continue to climb? Let me give you the bottom line. You're I the stocks feels little fully. I E trading twenty four times next year's estimates. But we're going to get some bad days in this market. This is want to buy a market white. Pullback the yard pounds coit exactly the kind of defensive name that could be worth buying into the teeth of a panic that. I expect now because the corona virus outbreak. And I've gotTa tell you panic possibility and when it happens colgate colgate colgate palmolive so fifty-six sixty five you know what I mean. It's got to wear them in Tennessee. William Jimmy Chill. Oh Man. I've been feeling what's up calling in regards to Yeti ticker symbol lights yes? I'm surprised that stock is back over. Five points despite Positive beat on earnings and a good twenty twenty outlook Followed you're successful guidance. To pick this up slowly as it sells off in the past in other time Yes ben Sterile and I my research record over and over and we feel exact same way. This talks being pushed down. It shouldn't be it is it had a brilliant quarter and there's been lean on thing from day one. They've got a good product. I think they do a good job.