Colgate-Palmolive Analysts Boost Their Forecasts After Better-Than-Expected Earnings

Colgate-Palmolive Company CL reported better-than-expected first-quarter earnings on Friday.

Colgate-Palmolive reported first-quarter FY24 sales growth of 6.2% year-on-year to $5.065 billion, beating the analyst consensus estimate of $4.956 billion. Non-GAAP EPS of 86 cents beat the consensus estimate of 81 cents, according to data from Benzinga Pro.

Total Oral, Personal, and Home Care net sales increased by 6.8% to $3.96 billion.

Operating margin expanded 160 basis points to 20.7%, and operating income for the quarter increased 15.2% to $1.04 billion.

"The strong gross and operating margin expansion in the quarter funded a 16% increase in advertising and we expect strong levels of brand investment over the balance of 2024," said Chairman, President, and CEO Noel Wallace.

Colgate raised FY24 net sales growth guidance to 2%-5% (prior view 1%-4%). The company also raised its organic sales growth outlook to 5%-7% (prior view 3%-5%). On a non-GAAP basis, the company still expects gross profit margin expansion, increased advertising investment, and mid to high-single-digit earnings-per-share growth.

Colgate shares rose 1.9% to close at $91.01 on Friday.

These analysts made changes to their price targets on Colgate following earnings announcement.

• RBC Capital boosted the price target on Colgate-Palmolive from $88 to $95. RBC Capital analyst Nik Modi maintained a Sector Perform rating.
• B of A Securities increased the price target on Colgate-Palmolive from $90 to $100. B of A Securities analyst Bryan Spillane maintained a Buy rating.
• Stifel increased the price target on Colgate-Palmolive from $94 to $95. Stifel analyst Mark Astrachan maintained a Buy rating.

Read More: This Analyst With 86% Accuracy Rate Sees Around 13% Upside In Chipotle Mexican Grill – Here Are 5 Stock Picks For Last Week From Wall Street’s Most Accurate Analysts