Companies and Brands

P&G Earnings Report Encourages Profit-Taking

Procter & Gamble Co. (NYSE: PG) reported first-quarter fiscal 2014 results before markets opened Friday morning. The consumer products maker posted adjusted diluted earnings per share (EPS) of $1.05 on revenues of $21.21 billion. In the same period a year ago, the company reported EPS of $1.06 on revenues of $20.74 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.05 EPS and $21.05 billion in revenues.

On a GAAP basis, the company reported EPS of $1.04, compared with $0.96 in the first quarter a year ago. Adjusted earnings do not include a restructuring charge of $0.02 per share and a gain of $0.01 per share due to rounding.

P&G guided organic revenue growth at 3% to 4% for the full 2014 fiscal year, while all-in growth is reckoned at 1% to 2%, including a 2% negative impact from currency translation effects. Adjusted earnings are expected to rise 5% to 7% for the year and adjusted EPS are expected to rise 7% to 9%.

The company posted full-year 2013 EPS of $4.05, so given the forecast, current year EPS should be in a range of about $4.33 to $4.41, compared with a current consensus estimate of $4.28. Fiscal 2013 revenues totaled $84.17 billion, and the forecast, including the negative impact of currency exchange effects, implies 2014 revenues in a range of about $85.01 billion to $85.85 billion, compared with a consensus estimate of $85.72 billion.

Second-quarter earnings are forecast to include a gain of $0.07 per share from the sale of the company’s European bleach business, and currency translation effects are expected to match those in the first quarter. P&G expects “strong” earnings growth in the second half of the 2014 fiscal year on additional top-line growth, productivity savings and improved currency exchange rates.

The company’s CEO said:

We have good market share momentum, a number of strong innovations coming to market over the balance of the year, and cost savings from productivity efforts that will continue to build. We remain focused on driving innovation and productivity. We continue to improve operating discipline and execution every day to create value for consumers and shareowners.

P&G shares were up about 0.1% in premarket trading Friday, at $80.69 in a 52-week range of $65.83 to $82.54. Thomson Reuters had a consensus analyst price target of around $85.75 before this report.

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.