Colgate-Palmolive (NYSE:CL) shares climbed 3% following the release of their first-quarter earnings, which surpassed analyst expectations. The company reported an adjusted EPS of $0.86, which was $0.05 higher than the consensus estimate of $0.81. Revenue for the quarter was also above expectations at $5.07 billion, compared to the estimated $4.96 billion.
The company's net sales saw a 6.2% increase, and organic sales grew by 9.8%, signaling robust performance across all divisions and categories. This growth is particularly noteworthy as it marks the third consecutive quarter of double-digit growth in operating profit, net income, and earnings per share. Colgate's global market share in toothpaste and manual toothbrushes remains strong at 41.3% and 31.7%, respectively.
Chairman, President, and CEO Noel Wallace expressed satisfaction with the company's performance, attributing the success to effective strategy execution and investments in long-term business health. "Our strong growth momentum and great start to the year add to our confidence that we are executing the right strategies to deliver on our updated 2024 financial targets and generate consistent, compounded earnings per share growth," said Wallace.
Looking ahead, Colgate-Palmolive has raised its full-year 2024 net sales growth guidance to 2% to 5%, up from the previously projected 1% to 4%. This update includes an anticipated mid-single-digit negative impact from foreign exchange. Organic sales growth expectations have also been increased to 5% to 7%, from the earlier 3% to 5% forecast. The company maintains its projection for gross profit margin expansion and a double-digit growth in GAAP earnings per share. On an adjusted basis, Colgate anticipates mid to high-single-digit earnings per share growth.
Investors responded positively to the earnings release, with the stock price reflecting confidence in the company's upwardly revised full-year guidance and its ability to sustain growth despite foreign exchange headwinds. The 3% rise in share price post-earnings announcement underscores the market's favorable reception to Colgate-Palmolive's strong quarterly performance and optimistic outlook for the year ahead.