Colgate-Palmolive Co (NYSE:CL) has raised the lower end of its 2024 guidance following a strong third quarter for the diversified consumer goods company.
The toothpaste maker’s Q3 revenue of $5.03 billion beat estimates of $5.01 billion and earnings per share (EPS) of $0.91 was ahead of the consensus of $0.88.
Net sales increased 2.4% and organic sales were up 6.8% year-over-year.
It retained a leadership position in toothpaste, with a global market share of 41.6%, and in manual toothbrushes with 32.3% of the global market share.
Colgate-Palmolive also raised its full-year guidance, now expecting net sales growth in the range of 3% to 5%, compared to its prior forecast of 2% to 5%.
Organic sales growth is seen between 7% and 8%, from earlier guidance of 6% to 8%.
“We are particularly pleased with the quality of our results this quarter on top of our strong first half results,” Colgate-Palmolive CEO Noel Wallace said in a statement.
“Our strong results this quarter and year to date add to our confidence that we are executing the right strategies to deliver on our updated 2024 organic sales and Base Business earnings growth expectations, drive cash flow and generate consistent, compounded earnings per share growth.”
Analysts at Jefferies noted that Colgate-Palmolive delivered a “high quality” Q3 EPS beat, on higher topline and gross margins and a 16% year-over-year jump in advertising spend.
The analysts noted that volume and mix growth across all divisions rose by 3.7%, surpassing the expected 2.9% and standing out in the staples sector, particularly with a 3.1% increase in pricing.
“Higher earnings and positive guidance revisions would likely bring numbers up, but it seems consensus was already there," they wrote.
Despite the earnings beat and guidance raise, shares of Colgate-Palmolive fell in early trade on Friday, down 2.5% at $97.30 shortly after Friday’s opening bell.