Colgate-Palmolive (NYSE:CL) shares rose premarket Friday after the company reported its latest quarterly earnings, topping consensus expectations.
The consumer products company posted fourth-quarter earnings of $0.87, $0.02 better than the analyst estimate of $0.85. At the same time, revenue for the quarter came in at $4.95 billion, up 7% year-on-year and above the consensus estimate of $4.89 billion.
The company's full-year net sales increased by 8.5% year-on-year, while its full-year EPS was $2.77.
“We are pleased to have finished the year with another quarter of strong top and bottom line results, including 7.0% net and organic sales growth, improved organic volume performance, gross and operating profit margin expansion and double-digit earnings per share growth," said Noel Wallace, CL's CEO.
For the full year 2024, the company sees net sales growth at 1% to 4%, including a low-single-digit negative impact from foreign exchange, while organic sales growth is expected to be within the company's long-term targeted range of 3% to 5%.
Furthermore, CL sees gross profit margin expansion, increased advertising investment and double-digit earnings-per-share growth.
Reacting to the report, analysts at Jefferies said CL reported a strong end to the year with 4Q organic sales and margins topping estimates.
"Sequentially improving volumes and oral care market share gains show the multi-year turnaround plan is working," analysts wrote. "Plans to continue spending more on advertising (+19% in '23) imply management is playing offense. Initial '24 guidance is within algo, and beatable, in our view."