Colgate-Palmolive (ticker: CL) has reported strong results for the third quarter of the year, surpassing both earnings and sales estimates. The company’s improved performance was primarily driven by higher prices.
According to FactSet, Colgate-Palmolive recorded adjusted earnings of 86 cents per share for Q3, surpassing the year-ago quarter and exceeding Wall Street’s estimate of 80 cents per share. Net sales for the consumer products giant reached $4.92 billion, beating analysts’ expectations of $4.81 billion. This is a significant increase from the $4.46 billion in sales reported during the same period last year. Notably, prices across the company rose by 9.5% compared to the previous year.
In a press release, CEO Noel Wallace expressed confidence in the company’s progress, stating, “The momentum in our business and the strength of our profit and cash flow performance adds to our confidence that we are executing the right strategies to deliver on our raised 2023 financial targets and generate long-term value for our stakeholders.”
In light of its strong performance, Colgate-Palmolive has raised its full-year growth guidance for adjusted earnings per share. The company now expects high-single-digit growth, up from its previous forecast of the high end of mid-single digits. Additionally, Colgate-Palmolive has revised its sales estimates. It anticipates net sales growth of 6% to 8%, compared to the previous range of 5% to 8%, and organic sales growth of 7% to 8%, as opposed to the previous call for 5% to 7%.
Following this positive news, shares of Colgate-Palmolive were up 1.1% to $73.87 in premarket trading on Friday.