Colgate-Palmolive's (CL) gross margin should show sequential improvement in Q4, with the company now expecting its full-year gross margin to be likely in line with the year-to-date gross profit margin of 60.1%, UBS Securities said in a Friday note.

With Colgate-Palmolive lowering its full-year organic sales growth forecast to 1% to 2% from the low end of 2% to 4%, previously, while keeping earnings per share guidance unchanged at low single digits, UBS said the company's guidance implies Q4 organic sales growth of flat to 4% and adjusted EPS to be between $0.90 to $0.97 compared with Wall Street expectations of +2% and $0.93, respectively.

Additionally, UBS said the company's tweak guidance implies that expectations for underlying raw and packaging material cost inflation have risen and that interest expense is expected to be down compared with flat to down, previously, among others.

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