Colgate-Palmolive (NYSE:CL) shares are on the rise today after the consumer products major delivered robust first-quarter results and hiked its financial outlook.
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CL’s Strong Q1 Performance
In Q1, CL’s revenue rose by a healthy 6.2% year-over-year to $5.07 billion. This figure outpaced expectations by $110 million. In sync, the EPS of $0.86 exceeded estimates by $0.05.
The company’s organic sales grew at an even more impressive 9.8% in Q1. Additionally, its gross profit margin expanded by 310 basis points to 60%. Notably, Colgate now commands a 41.3% market share in toothpastes and a 31.7% market share in manual toothbrushes globally.
The quarter was marked by growth across CL’s divisions and product categories. Notably, its net sales rose by 4% in North America and by 16.5% in Latin America on the back of volume and pricing gains. Moreover, favorable pricing offset an impact from lower volumes in the Asia Pacific region.
Colgate-Palmolive’s Financial Outlook
Buoyed by this performance, CL has hiked its financial outlook for the full year. Colgate expects net sales growth for 2024 in the range of 2%-5%, compared to the prior estimate of a 1%-4% increase. Organic sales growth for the year is pegged in the range of 5%-7% versus the prior estimates of a 3%-5% growth. Furthermore, it anticipates a mid-to-high-single-digit growth in EPS for the year.
What Is the Price Forecast for CL Stock?
Colgate-Palmolive’s continued market share gains and pricing power have propelled the company’s shares nearly 24% higher over the past six months. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average CL price target of $93.18. However, analysts’ views on CL could see a revision following today’s earnings report.
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