UPDATE 3-Colgate profit beats, says gains market share
* Q3 adjusted EPS of $0.99 tops Wall St view by a penny
* Says comfortable with Wall Street views for Q4, 2008
* Sees double-digit earnings growth in 2009
* Colgate shares up 7.1 pct; P&G up 3.2 pct (Adds stock activity, analyst comment, byline)
NEW YORK, Oct 30 (Reuters) - Colgate-Palmolive Co (CL.N) beat expectations with its quarterly profit on Thursday and gave a positive forecast through next year, aided by price increases and demand in emerging markets.
Results from the maker of Colgate toothpaste and Hill's Science Diet pet food encouraged investors who were cautious about the personal care sector after Crest toothpaste maker Procter & Gamble Co (PG.N) lowered its forecasts the day before.
"Colgate, like P&G, is very exposed overseas, and possibly even more so, to some of the currencies that are more volatile right now," Morningstar analyst Lauren DeSanto said, but added that Colgate was not as exposed on the commodity side as P&G.
Colgate said a benefit from declining oil prices should offset the hit to results from the strengthening dollar, which lowers the value of international sales.
Despite fluctuations in commodity costs and currency values, DeSanto said both companies would probably be able to weather the current economic storm, since they sell strongly branded, staple products.
"At the end of the day, I'm still a believer that these are such great brands, that even in emerging and developing economies that are getting hit, you're going to see consumers really want these brands," DeSanto said.
Analysts have been watching closely to see whether consumers would trade down to lower-priced private-label items as Colgate and its rivals raise prices to offset higher costs.
On Thursday, Colgate said it had seen little evidence of consumers opting for lower-priced goods over its brands and that it had gained share in worldwide markets for toothpaste, toothbrushes, mouth rinse, bar soaps and shampoo.
Colgate shares rose 7.1 percent to $64.27, while P&G was up 3.2 percent at $63.27.
BEATING EXPECTATIONS
Colgate profit rose to $499.9 million, or 94 cents per share, in the third quarter, from $420.1 million, or 77 cents per share, a year earlier. Continued...
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