How Procter & Gamble Pulled Off an Excellent Q4

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Procter & Gamble Co. (NYSE: PG) released its fourth-quarter earnings report before the markets opened on Wednesday. The company said that it had $1.25 in earnings per share (EPS) and $17.44 billion in revenue, which compares with consensus estimates of $1.21 in EPS and revenue of $17.15 billion. In the same period of last year, the consumer products giant said it had EPS of $1.19 on $17.39 billion in revenue.

During the most recent quarter, Procter & Gamble returned $2.6 billion of cash to shareholders via nearly $1.9 billion of dividend payments and $0.8 billion of common stock repurchases.

In terms of its segments, the firm reported:

  • Beauty net sales increased 4% year over year to $3.36 billion.
  • Grooming net sales decreased 9% to $1.62 billion.
  • Health Care net sales came in at $2.22 billion.
  • Fabric & Home Care net sales increased 2% to $5.56 billion.
  • Baby, Feminine & Family Care net sales decreased 1% to $4.56 billion.
  • Corporate net sales increased 2% to $129 million.

Looking ahead to the 2019 full year, the company expects to see organic sales growth in the range of 2% to 4% and core EPS growth of roughly 8%. Consensus estimates call for $4.74 in EPS and $68.89 billion in revenue for the year.

David Taylor, board chair, president and CEO, commented:

We delivered strong organic sales in the second quarter, building on our first quarter momentum, which enables us to increase our outlook for the year. Our focus on superiority, productivity and improving P&G’s organization and culture is delivering improved results despite a challenging competitive and macroeconomic environment.

Shares of Procter & Gamble closed Tuesday at $90.44, in a 52-week range of $70.73 to $96.90. The consensus analyst price target is $93.33. Following the announcement, the stock was up about 4% at $94.19 in early trading indications Wednesday.

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