Colgate-Palmolive Cleans Up on Fourth-Quarter Sales Beat

Colgate-Palmolive beats Wall Street's fourth-quarter revenue estimates.
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Shares of Colgate-Palmolive (CL) - Get Report were climbing 4.9% to $72.88 in premarket trading Friday after the household products maker beat Wall Street's fourth-quarter revenue estimates.

The New York-based company, owner of such brands as Colgate, Palmolive, Speed Stick and Irish Spring, reported net income of $643 million, or 75 cents a share, up from $606 million, or 70 cents a share, a year eatlier. Adjusted earnings came to 73 cents, which matched analysts' estimates.

Sales totaled $4.02 billion, up from $3.81 billion last year and ahead of Wall Street's calls for $3.93 billion. Organic sales rose 5%.

The company said the acquisition of Laboratoires Filorga Cosmétiques' skin health business contributed 2% to net sales and unit volume growth in the quarter.

Looking ahead to 2020, Noel Wallace, president and CEO, said in a statement that "based on current spot rates, we expect 4% to 6% net sales growth and 3% to 5% organic sales growth."

Wallace said that Colgate continues to lead the global toothpaste market with 41.1% of the market year to date. Colgate also 31.6% of the global market share of the manual toothbrush market. 

"We are very pleased to have ended 2019 with another quarter of sequential improvement in net sales growth and organic sales growth," Wallace said. "It is especially encouraging that the strong 5% organic sales growth was broad-based, with every operating division contributing to the growth."

North America net sales, which make up 21% of the company's sales, increased 1.5% in the quarter. Colgate's share of the U.S. toothpaste market is at 34% year to date.