Consumer products giant Procter & Gamble Co (NYSE:PG) posted market-beating fiscal Q1 earnings results and reaffirmed its full-year outlook.
The Cincinnati-based company reported fiscal Q1 EPS of $1.03, beating analyst expectations of $0.98. Revenue fell 0.1% from last year to $16.52 billion, but still topped Wall Street’s view of $16.48 billion.
P&G also noted that organic sales increased in all five business segments, on low-to-mid single digit organic volume growth in all segments. Healthcare products, which include power toothbrushes and cold medicine, led the way with a 7% sales rise.
Looking ahead, Procter & Gamble reaffirmed its prior full-year earnings guidance of $3.82 to $3.89 per share for the year (analysts are looking for $3.88). It also expects full-year fiscal 2017 revenues to rise 1% to approximately $65.95 billion, while analysts expect $66 billion in sales for the year. Organic sales are expected to gain 2%, and foreign exchange effects are expected to negatively impact sales growth by one percentage point.
The company commented via press release:
“Our first quarter results mark a good start to the fiscal year,” said Chairman, President and Chief Executive Officer David Taylor. “We delivered broad-based organic sales growth improvement across product categories and markets, as well as strong cost savings. Earlier this month, we completed the last major step in P&G’s portfolio transformation with the Beauty Brands divestiture to Coty Inc. We are now focusing all our efforts on 10 large, structurally attractive categories where P&G holds leading positions. We’re pleased with the progress we’re making, but there is still more work to do to get back to the levels of balanced top- and bottom-line growth and cash generation that will consistently put P&G shareholder value creation among the best in our industry.”
P&G shares rose $2.05 (+2.44%) to $86.15 in premarket trading Tuesday. Prior to today’s report, PG had gained 5.91%, putting it roughly in-line with the S&P 500’s return during the same period.