Is This the Turnaround Procter & Gamble Has Waited For?
Procter & Gamble released better-than-expected fiscal first-quarter financial results before the markets opened on Friday.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Procter & Gamble Co. (NYSE: PG) released its fiscal first-quarter financial results before the markets opened on Friday. The company said that it had $1.12 in earnings per share (EPS) and $16.69 billion in revenue, compared with Thomson Reuters consensus estimates of $1.09 in EPS and $16.46 billion in revenue. In the same period of last year, P&G said it had EPS of $1.09 on $16.65 billion in revenue.
Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased 4% in the most recent quarter. At the same time, operating cash flow was $3.6 billion and adjusted free cash flow productivity was 95%.
In terms of its segments, the company reported as follows:
- Beauty net sales increased 5% year over year to $3.29 billion.
- Grooming net sales decreased 1% to $1.56 billion.
- Health Care net sales decreased 3% to $1.85 billion.
- Fabric & Home Care net sales increased 2% to $5.49 billion.
- Baby, Feminine & Family Care net sales decreased 3% to $4.39 billion.
- Corporate net sales increased 7% to $116 million.
[nativounit]
Looking ahead to the fiscal full year, the company expects to see EPS of $4.22, with organic sales growth of 2% to 3%. Consensus estimates from Thomson Reuters call for $4.37 in EPS and $66.5 billion in revenue for the year.
During the latest quarter, the company returned $3.1 billion of cash to shareholders via $1.9 billion of dividend payments and nearly $1.3 billion of common stock repurchases.
David Taylor, board chair, president and CEO, commented:
We generated strong consumption, organic volume and organic sales in the first quarter. This keeps us on track to deliver our top- and bottom-line targets for the fiscal year. Our focus on superiority, productivity and improving P&G’s organization and culture is driving improved results.
Shares of Procter & Gamble closed Thursday at $80.24, in a 52-week range of $70.73 to $93.14 and with a consensus analyst price target of $83.83. Following the announcement, the stock was up nearly 5% at $84.05 in early trading indications Friday.
[recirclink id=499758]
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
