Consumer Products

How Procter & Gamble Earnings Fared in the COVID-19 Era

Procter & Gamble Co. (NYSE: PG) reported its fiscal third-quarter financial results before the markets opened on Friday. The company said that it had $1.17 in earnings per share (EPS) and $17.2 billion in revenue, which compares with consensus estimates of $1.13 in EPS and revenue of $17.46 billion. The same period of last year reportedly had EPS of $1.06 on $16.37 billion in revenue.

During the latest quarter, net sales increased 5% year over year. This was affected by unfavorable foreign exchange rates. However, excluding forex, net sales increased 6%, primarily driven by an increase in organic shipment volume.

Organic shipment volume increased 6% as strong consumer demand in North America and certain European markets due to the COVID-19 pandemic was partially offset by volume decreases in certain Asian markets due primarily to temporary disruption of consumer access to retail markets related to the COVID-19 pandemic.

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

  • Beauty net sales decreased 1% year over year to $3.03 billion.
  • Grooming net sales decreased by 3% to $1.38 billion.
  • Health Care net sales increased by 7% to $2.26 billion.
  • Fabric & Home Care increased by 8% to $5.83 billion.
  • Baby, Feminine & Family Care increased 6% to $4.60 billion.

Looking ahead to the 2020 fiscal full year, the company said that it expects to see core EPS growth in the range of 8% to 11% and all-in sales growth of 3% to 4%. Consensus estimates are calling for $4.99 in EPS and $70.45 billion in revenue for the fiscal full year.

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

The strong results we delivered this quarter are a direct reflection of the integral role our products play in meeting the daily health, hygiene and cleaning needs of consumers around the world. Our organization has been doing a terrific job against our near-term priorities – protecting the health and safety of each other, maximizing availability of P&G products to meet heightened consumer need and helping society meet and overcome the challenges of this crisis.

Procter & Gamble stock traded up about 1% early Friday at $122.67, in a 52-week range of $94.34 to $128.09. The consensus price target is $126.28.