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Colgate-Palmolive Beats on Profit, Meets Sales, Cuts Organic Growth Outlook

The update signals softer demand despite a profit beat.

Overview

  • Q3 adjusted earnings were $0.91 per share versus the $0.89 consensus, with net sales of $5.13 billion matching estimates.
  • Management reduced full-year organic sales growth guidance to 1%–2% from 2%–4%, while full-year EPS guidance was reaffirmed.
  • Gross profit margin declined by 190 basis points to 59.4%, with about $75 million in tariff-related costs weighing on results.
  • Pricing rose 2.3% as volumes fell 1.9%, and executives pointed to weak North American demand and increased trading down to lower-priced options.
  • Shares closed at $77.07, up 0.73% on Friday, then eased slightly after hours, following months of analyst price-target cuts that largely kept ratings intact.