Colgate (CL) Stock Up on Q1 Earnings & Sales Beat, Raised View

Core Viewpoint - Colgate-Palmolive Company reported strong first-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][10] Financial Performance - Earnings per share on a non-GAAP basis were 86 cents, an 18% increase from the prior year, surpassing the Zacks Consensus Estimate of 82 cents [1] - Net sales reached $5,065 million, a 6.2% increase from the previous year, exceeding the Zacks Consensus Estimate of $4,951 million, with organic sales growth of 9.8% [2][4] - Gross profit was $3,039 million, up 12.1% year over year, with a gross profit margin expansion of 310 basis points to 60% [4][5] Segment Performance - North America saw net sales rise 4% year over year, driven by a 1.2% increase in pricing and a 2.9% rise in volume [6] - Latin America reported a 16.5% increase in net sales, with 19.7% pricing gains and a 6.2% increase in volume, despite a 9.4% unfavorable currency impact [7] - Europe experienced a 9.5% increase in net sales, with a 3.1% rise in volume and a 4.1% pricing gain [8] - Asia Pacific's net sales declined 1.5% year over year, impacted by a 2.9% decline in volumes, although organic sales improved by 1.5% [9] - Africa/Eurasia's net sales decreased 4.5% year over year, but organic sales grew 16.2% due to strong pricing and volume growth [9] Outlook - Management raised its 2024 sales forecast to 2-5% growth, with organic sales growth expected at 5-7% [10][11] - The company anticipates gross profit margin expansion driven by continued pricing gains and revenue growth management initiatives [10] - Adjusted earnings per share are expected to grow in the mid to high-single digits, with GAAP earnings per share anticipated to increase in double digits [11]