STOCKS | Colgate-Palmolive Revenue Rises 4.6% Despite Pressure in U.S. Consumer Market

Colgate-Palmolive reported third-quarter net sales of $5.37 billion, up 4.6% year over year and above Wall Street expectations. According to Sina Finance, sales increased in every region except North America, where they fell 1.7%; strong overseas performance offset continued weakness in the region. Sales volume rose 1.7% for the quarter, while product prices increased 2% to partly offset higher costs for raw materials, packaging and logistics. CEO Noel Wallace said the U.S. market remained challenging, with higher oil prices contributing to volatile consumer behavior and low market confidence. The company is increasing brand investment and developing premium products to improve its U.S. business. Wallace said emerging markets and Europe continued to perform well. Colgate-Palmolive expects persistent cost pressures to continue through the fourth quarter and into early next year. It narrowed its full-year net sales growth outlook to 4%–5%, from 2%–6%, and forecast adjusted earnings per share growth of 5%–7%, versus its previous outlook for mid-single-digit growth. Third-quarter net income was $751 million, or $0.94 per share, compared with $735 million, or $0.91 per share, a year earlier. FactSet data showed adjusted earnings per share of $0.97, above the analyst consensus of $0.93. The stock rose 2.9% last Friday to $95.92 and was up 23% year to date.