Colgate-Palmolive Co. Beats Expectations, Raises Full-Year Outlook

Shares of Colgate-Palmolive Co. (CL) rose 0.9% in premarket trading Friday following the company's strong second-quarter results, which exceeded expectations and prompted an upward revision of its full-year outlook. Despite a decline in volume, the company managed to offset this with another increase in pricing.

Financial Highlights

• Net income dropped to $502 million, or 60 cents a share, compared to $603 million, or 72 cents a share, in the same period last year.
• Adjusted earnings per share rose to 77 cents from 72 cents, surpassing the FactSet consensus of 75 cents.
• Sales increased by 7.5% to $4.82 billion, exceeding the FactSet consensus of $4.70 billion.
• Pricing experienced an 11.0% surge, slightly lower than the 12% increase observed last year.
• Volume declined by 1.5% after remaining steady last year.

Upgraded Outlook

For 2023, Colgate-Palmolive Co. has raised its guidance ranges for both EPS growth and sales growth. The company now expects EPS growth to be at the "high end" of the mid-single-digits percentage range, up from mid-single-digits. Additionally, it anticipates sales growth to range between 5% and 8%, up from the previous range of 3% to 6%.

Market Performance

Over the past three months, Colgate-Palmolive Co.'s stock has experienced a 3.4% decline, while the S&P 500 has gained 8.8%.