Colgate-Palmolive (NYSE: CL ) shares jumped more than 3% Friday on the back of its first quarter earnings and revenue beat.
The consumer products company reported Q1 EPS of $0.73, $0.03 better than the analyst estimate of $0.70, while revenue for the quarter, which rose 8.5% YoY, came in at $4.77 billion versus the consensus estimate of $4.57 billion.
The company said in its statement that it performed well, despite continued pressure from raw and packaging material costs during the quarter.
"We expect to drive further gross margin improvement in the balance of the year through continued strong pricing and the benefits from funding-the-growth and other productivity initiatives," said Noel Wallace, Chairman, President and Chief Executive Officer of CL.
Looking ahead, the company now expects 2023 net sales growth to be 3% to 6%, while organic sales growth is expected to be 4% to 6%.
Reacting to the report, Deutsche Bank analysts said they expected the company's shares to react positively to the report.
"Overall, organic sales growth in the quarter beat expectations (and outpaced the always-important benchmark set by PG, despite headwinds from the Fabuloso recall in the US), gross and operating margins exceeded expectations (as did EPS), and the company raised full-year guidance (organic sales growth of +4%-6% vs. 'towards the high-end of its long-term algorithm +3%-5%' previously; EPS growth of +MSD% vs. +LSD-MSD% previously," said the analysts, who maintained a Buy rating and $80 price target on the stock.
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