RBC Capital provided their outlook on Colgate-Palmolive Company (NYSE:CL) ahead of the upcoming Q3 earnings announcement, estimating organic sales growth of 7.7% year-over-year (vs. Street’s 7.4%) and EPS of $0.75 (vs. Street’s $0.73).

The analysts see potential topline upside driven by Hill’s and emerging markets, with improving supply chain results in North America, and weakening results in Europe. The analysts expect Hill’s momentum to continue to be driven by an increase in pet adoptions during COVID, premiumization in the category, and the company’s market share gains aided by innovation in both the Prescription Diet and Science Diet lines.

The analysts anticipate incremental FX headwinds to put more pressure on margins and EPS, likely driving fiscal 2022 estimates toward the low end or slightly below the company’s guidance range.