Colgate-Palmolive Company (NYSE:CL) posted a third-quarter earnings Friday that topped expectations due in part to price increases that upped margins.
The consumer goods company posted adjusted earnings of $0.86 per share, above the $0.80 Street consensus. Revenue was $4.92 billion, up from $4.46 billion a year ago, above expectations of $4.81 billion.
Notably, Colgate-Palmolive increased its prices by an average of 9.5% globally and said its base business gross profit margin rose 140 basis points to 58.6%.
"This was our third quarter of sequential improvement in gross profit margin and our second quarter in a row delivering double-digit operating profit growth along with a double-digit increase in advertising spending," CEO Noel Wallace said in a statement.
Looking ahead, the company said it expects full-year sales growth of 6% to 8%, up from previous guidance of 5% to 8%. Earnings per share are expected to grow by high-single digits, up from the top end of mid-single digits.
Shares of the company traded 0.6% higher Friday morning.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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