Colgate-Palmolive shares off premarket after sales miss despite 11.5% price hike

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Colgate-Palmolive Co. stock CL, +1.93% slid 0.4% in premarket trade Friday, after the consumer goods giant missed sales estimates for the third quarter as inflationary pressures pushed costs higher and the strong dollar weighed. The company posted net income of $618 million, or 74 cents a share, for the quarter, compared with $634 million, or 75 cents a share, in the year-earlier period. Adjusted per-share earnings also came to 74 cents, a penny ahead of the 73 cent FactSet consensus. Sales edged up to $4.455 billion from $4.414 billion a year ago, below the $4.472 billion FactSet consensus. Colgate said it retained a 39.7% share of the global toothpaste market and a 31.6% share of the manual toothbrush market. “As expected, significant increases in raw and packaging material and logistics costs continued during the quarter and the negative impact from currency accelerated,” Chief Executive Noel Wallace said in a statement. “Beyond revenue growth management and the significant pricing actions we are taking, we are also continuing our efforts around funding-the-growth and other productivity initiatives to help offset these headwinds.” The company raised prices by 11.5% in the quarter. Colgate updated its full-year guidance and said it now expects sales growth in the middle of its 1% to 4% range. It expects adjusted per-share earnings to decline by 7% to 8% due to the strong dollar impact. Shares have fallen 14% in the year to date, while the S&P 500 SPX, +2.46% has fallen 20%.

This article was originally published by Marketwatch.com. Read the original article here.

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