How Procter & Gamble Earnings Fared in the COVID-19 Era
Procter & Gamble stock rose marginally after it reported mixed fiscal third-quarter financial results before the markets opened on Friday.
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Procter & Gamble Co. (NYSE: PG | PG Price Prediction) 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.
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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.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
