How Procter & Gamble Is Pulling Ahead With Q4 Earnings

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Procter & Gamble Co. (NYSE: PG) reported its fiscal fourth-quarter financial results before the markets opened on Tuesday. The company said that it had $1.10 in earnings per share (EPS) and $17.1 billion in revenue, while consensus estimates had called for $1.05 in EPS an $16.86 billion in revenue. In the same period of last year, the company said it had EPS of $0.94 on $16.5 billion in revenue.

For the most recent quarter, net sales were up 4% from the prior year. Unfavorable foreign exchange was a 4% hurt to sales for the quarter. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased 7%, driven by a 3% increase in organic shipment volume.

In terms of its segments, the company reported as follows:

  • Beauty revenues increased 3% year over year to $3.19 billion.
  • Grooming revenues decreased by 3% to $1.60 billion.
  • Health Care revenues increased 13% to $2.04 billion.
  • Fabric & Home Care revenues increased 5% to $5.65 billion.
  • Baby, Feminine & Family Care revenues increased 1% to $4.50 billion.

Looking ahead to the 2020 fiscal full year, the company expects to see EPS growth in the range of 4% to 9% and all-in sales growth of 3% to 4% year over year. Consensus estimates call for $4.75 in EPS and $69.76 billion in revenue for the year.

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

We met or exceeded each of our going-in core targets for sales, profit and cash in fiscal 2019. We built sales, market share and profit margin momentum throughout the year, ending with our strongest quarter of organic sales growth in well over a decade. Looking ahead, we will continue to focus on superiority, productivity, constructive disruption and improving P&G’s organization and culture to deliver sustainable, balanced top-line and bottom-line growth along with strong cash generation in a challenging competitive and macroeconomic environment.

Shares of P&G traded up about 4% on Tuesday to $121.12, in a 52-week range of $78.49 to $121.76. The consensus price target is $110.25.


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