Companies and Brands
Procter & Gamble Earnings and Acquisition Not Enough for Investors
Published:
Last Updated:
Procter & Gamble Co. (NYSE: PG) made a couple big announcements on Thursday. First the firm released its fiscal third-quarter financial results, and then it announced an acquisition. Ultimately, these big moves by the Dow Jones industrial average component were met by investor remorse.
As for the third-quarter report, P&G said it had $1.00 in earnings per share (EPS) on $16.26 in revenue. Consensus estimates had called for $1.00 in EPS and revenue of $16.22 billion. The same period of last year reportedly had EPS of $0.96 on $15.61 billion in revenue.
The firm reported its segments as follows:
- Beauty segment organic sales increased 5%.
- Grooming segment organic sales decreased 3%.
- Health Care segment organic sales increased 1%.
- Fabric and Home Care segment organic sales increased 3%.
- Baby, Feminine and Family Care segment organic sales decreased 3%.
Looking ahead to the 2018 full year, the company expects organic sales growth to be in the range of 2% to 3% and that EPS will grow between 5% and 8%. The consensus estimates call for $4.19 in EPS on $66.92 billion in revenue for the year.
At the same time, P&G is acquiring the Consumer Health business of Merck KGaA, Darmstadt, Germany, for a purchase price of approximately €3.4 billion.
This acquisition enables P&G to expand its successful consumer health care business by adding a portfolio of differentiated, physician-supported brands across a broad geographic footprint. It also provides P&G with strong health care commercial and supply capabilities, deep technical mastery and proven consumer health care leadership that will complement P&G’s existing consumer Health Care capabilities and brands such as Vicks, Metamucil, Pepto-Bismol, Crest and Oral-B.
Shares of P&G were down 3% at $75.03 Thursday morning, with a consensus analyst price target of $91.40 and a 52-week range of $74.20 to $94.67.
Travel Cards Are Getting Too Good To Ignore
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
