How Procter & Gamble Crushed Q1 Earnings

Procter & Gamble Co. (NYSE: PG | PG Price Prediction) reported its fiscal first-quarter financial results before the markets opened on Tuesday. The company said that it had $1.37 in earnings per share (EPS) and $17.8 billion in revenue, while consensus estimates had called for $1.24 in EPS and $17.42 billion in revenue. In the same period of last year, the company said it had EPS of $1.12 on $16.69 billion in revenue.

For the fiscal first quarter, net sales were up 7% from the prior year. Unfavorable foreign exchange was a 2% hurt to sales for the quarter. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased 7%, driven by a 4% increase in organic shipment volume.

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

• Beauty revenues increased 10% year over year to $3.55 billion.
• Grooming revenues increased by 1% to $1.53 billion.
• Health Care revenues increased 9% to $2.22 billion.
• Fabric & Home Care revenues increased 8% to $5.83 billion.
• Baby, Feminine & Family Care revenues increased 5% to $4.57 billion.

Looking ahead to the 2020 fiscal full year, the company expects to see EPS growth in the range of 5% to 10% and all-in sales growth of 3% to 5% year over year. Consensus estimates call for $4.84 in EPS and $69.97 billion in revenue for the year.

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

We delivered strong top-line growth, profit margin expansion and cash productivity in the first quarter, enabling us to increase our outlook for fiscal year results. We will continue executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture to deliver balanced top-line and bottom-line growth along with strong cash generation in a challenging competitive and macroeconomic environment.

Shares of P&G closed Monday at $119.08, in a 52-week range of $86.01 to $125.36. Following the announcement, the stock was up about 4% at $124.01 in early trading indications on Tuesday.

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