Should Investors Be More Enthusiastic About Procter & Gamble Earnings?

Companies and Brands

Published: October 20, 2020 9:43 am

Procter & Gamble Co. (NYSE: PG) reported its fiscal first-quarter financial results before the markets opened on Thursday. The company said that it had $1.63 in earnings per share (EPS) and $19.3 billion in revenue, while consensus estimates were just $1.41 in EPS and revenue of $18.35 billion. The same period of last year reportedly had EPS of $1.37 on $17.8 billion in revenue.

During the latest quarter, net sales increased 9% year over year. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales also increased 9%, driven by a 7% increase in organic shipment volume

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

Beauty net sales increased 7% year over year to $3.79 billion.
Grooming net sales increased by 5% to $1.60 billion.
Health Care net sales increased by 11% to $2.47 billion.
Fabric & Home Care increased by 14% to $6.64 billion.
Baby, Feminine & Family Care increased 3% to $4.72 billion.

On the books, Procter & Gamble’s cash and cash equivalents totaled $13.39 billion, down from $16.18 billion at the end of the previous fiscal year.

Looking ahead to the 2021 fiscal full year, the company said that it expects to see core EPS growth in the range of 4% to 9% and all-in sales growth of 3% to 4%. Consensus estimates are calling for $5.40 in EPS and $72.93 billion in revenue for the full year.

Procter & Gamble stock traded up 1.5% early Tuesday to $144.20, in a 52-week range of $94.34 to $145.87. The consensus price target is $141.69.

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