Colgate (CL) Stock Gains on Q2 Earnings Beat, '24 EPS View Hike

Core Viewpoint - Colgate-Palmolive Company reported strong second-quarter 2024 results, with both top and bottom lines exceeding expectations and showing year-over-year improvement, driven by robust sales growth and margin expansions [1][2][12] Financial Performance - Earnings per share on a Base Business basis were 91 cents, an 18% increase from the prior year, surpassing the Zacks Consensus Estimate of 87 cents [1] - Net sales reached $5.1 billion, a 4.9% increase from the previous year, beating the Zacks Consensus Estimate of $5,012 million, with organic sales growth of 9% [2][4] - Gross profit improved by 10% year over year to $3.07 billion, with a gross profit margin expansion of 280 basis points to 60.6% on a GAAP basis [5][6] Segment Performance - North America's net sales rose 2.5% year over year, driven by a 5.9% increase in volume, despite a 3.3% decline in pricing [7] - Latin America's net sales advanced 7.6% year over year, with 13.3% pricing gains and a 5.5% increase in volume, although impacted by an 11.2% unfavorable currency effect [8] - Europe’s net sales increased 6.2% year over year, supported by a 5.2% rise in volume and a 1.3% pricing gain [9] - Asia Pacific segment's net sales improved 2.6% year over year, reflecting a 3.4% increase in volume [10] - Africa/Eurasia's net sales rose 2.2% year over year, driven by an 8.4% increase in volume and 8% growth in pricing [11] Outlook - Management raised its organic sales and base business EPS forecasts for 2024, now expecting organic sales growth of 6-8% [12][13] - The company anticipates net sales growth of 2-5%, reflecting a higher organic sales view but increased negative currency impact [12] - Adjusted earnings per share are expected to increase by 8-11% for 2024, with double-digit growth anticipated on a GAAP basis [13]