P&G Slides By With Earnings

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Procter & Gamble Co. (NYSE: PG) released its fiscal fourth-quarter financial results before the markets opened on Tuesday. The company said that it had $0.94 in earnings per share (EPS) and $16.50 billion in revenue, which compares with consensus estimates of $0.90 in EPS and revenue of $16.54 billion. In the same period of last year, P&G said it had EPS of $0.85 and $16.08 billion in revenue.

During the most recent quarter, organic sales increased 1%, driven by a 3% increase in organic shipment volume. All-in volume increased 2%. Pricing reduced net sales by 2%, due primarily to increased merchandising investments.

In terms of its segments, P&G reported as follows:

  • Beauty net sales increased 10% year over year to $3.10 billion.
  • Grooming net sales decreased 1% to $1.65 billion.
  • Health Care net sales increased 4% to $1.81 billion.
  • Fabric & Home Care net sales increased 3% to $5.36 billion.
  • Baby, Feminine & Family Care net sales decreased 2% to $4.46 billion.

Looking ahead to the 2019 fiscal full year, the company expects to see core EPS growth of 3% to 8%. The consensus estimates call for $4.39 in EPS and $67.57 billion in revenue.

David Taylor, board chair, president and chief executive, commented:

We made important progress in fiscal 2018. We delivered strong volume and consumption growth, market share trends improvement, Core EPS and cash generation results above going-in targets, albeit with organic sales slightly below target. We are operating in a very dynamic environment affecting the cost of operations and consumer demand in our categories and against highly capable competitors. We will accelerate change in the organization and culture to meet these challenges. We will continue to drive cost and cash productivity improvements, and we will invest in the superiority of our products, packages and demand creation programs. All of these efforts are aimed at delivering balanced top-line and bottom-line growth that creates shareholder value over the short, mid and long term.

Shares of P&G were last seen trading at $80.00, with a consensus analyst price target of $81.38 and a 52-week range of $70.73 to $94.67.