Procter & Gamble, Exceeding Expectations, Increased!

Procter & Gamble Surprises Wall Street

Procter & Gamble (PG) pleased investors by exceeding Wall Street earnings forecasts on Friday. The company reported better-than-expected results, particularly showing strong performance in the beauty and personal care sectors. This improvement offset declines in slower-performing areas such as health care and home care products.

The company’s stock gained 4% in pre-market trading. At the same time, current CEO Jon Moeller announced he would be stepping down to hand over the reins to Sheilesh Jejurikar. Moeller stated that consumers are not spending less but are looking for ways to save on everyday products, taking measures such as doing fewer laundry loads.

Prior to the results, the market had been cautiously optimistic due to mixed demand trends. JP Morgan analyst Andrea Teixeira commented, “Markets continue to face challenges for a clear catalyst for a recovery in consumption in the near term, and this situation is becoming more pronounced in PG's key markets of the U.S. and Europe.”

Procter & Gamble's financial performance was as follows:

• Net sales: $22.4 billion, up 3% year-over-year, estimate: $22.2 billion
• Organic sales growth: 2%, estimate: 1.42%
• Beauty segment organic revenue growth: 6%, estimate: 2.57%
• Care segment organic revenue growth: 3%, estimate: 2.18%
• Health care segment organic revenue growth: 1%, estimate: 1.97%
• Fabric and home care segment organic revenue growth: Flat, estimate: 0%
• Baby, feminine and family care segment organic revenue growth: 0%, estimate: 1.17%
• Detailed earnings: $1.99, up 3% year-over-year, estimate: $1.88
• Full-year total sales growth: Updated (previous: 1% - 5%)
• Full-year organic sales growth: Updated (previous: 0% - 4%; estimate: 2.14%)
• Full-year earnings per share: Updated (previous: $6.83 - $7.09; estimate: $6.97)