Colgate-Palmolive Company (NYSE: CL) shares plunged over 5% in pre-market trading on Friday, as the consumer products giant's flat annual sales forecast overshadowed a better-than-expected fourth quarter earnings performance.

The toothpaste and household goods maker reported fiscal fourth quarter 2024 adjusted earnings of $0.91 per share, surpassing the $0.89 per share analyst consensus estimate. However, net sales for the quarter declined 0.12% year-over-year to $4.94 billion, narrowly missing expectations of $4.98 billion.

While Colgate's organic sales grew a healthy 4.3% in the fourth quarter, the company issued a tepid outlook for fiscal 2025. It expects net sales for the full year to be roughly flat compared to 2024 levels, including a mid-single-digit negative impact from foreign exchange headwinds.

The muted sales growth guidance overshadowed Colgate's upbeat forecast for organic sales growth within its long-term targeted range of 3% to 5% for 2025. On the profitability front, the company expects gross profit margin expansion and low to mid-single-digit adjusted earnings per share growth for the year.

Investors appeared to focus on the top-line weakness, driving Colgate shares down over 5% to around $88 in pre-market trading on Friday. The sell-off comes despite the company's positive organic sales momentum and continued earnings growth expectations for 2025.