Colgate-Palmolive Co. (CL) reported better-than-expected results in the third quarter. The consumer products company reported adjusted earnings of $0.91 per share, an increase of 6% year-over-year, beating consensus estimates of $0.89 per share.
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The company posted net sales of $5.03 billion, up by 2.4% year-over-year, compared to consensus estimates of $5.01 billion.
CL’s CEO Comments on the Results
Colgate-Palmolive’s Chairman, President, and CEO, Noel Wallace, commented, “Every operating division delivered positive volume growth for the second consecutive quarter as we focus on increasing household penetration to drive category growth and market shares.”
Furthermore, consumers are increasingly spending on daily essentials compared to discretionary items amid rising costs. This trend has bolstered sales for consumer packaged goods companies like Colgate-Palmolive. This shift in spending has led to rising demand for the company’s oral care and hygiene products, despite a series of price increases.
CL Raises FY24 Guidance
Looking ahead, CL expects its net sales in FY24 to grow in the range of 3% to 5%, compared to its prior forecast of between 2% and 5%. Moreover, the company estimates its adjusted earnings will rise between 10% and 11%, versus its prior outlook of 8% to 11%.
Is CL a Buy?
Analysts remain cautiously optimistic about CL stock, with a Moderate Buy consensus rating based on nine Buys, seven Holds, and one Sell. Over the past year, CL has increased by more than 30%, and the average CL price target of $107.71 implies an upside potential of 8% from current levels. These analyst ratings are likely to change following CL’s results today.
