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Key Takeaways
- Procter & Gamble’s Q2 FY2024 earnings and revenue missed analyst expectations.
- Revenue rose 3% from a year ago to $21.4 billion, thanks to higher prices.
- Net earnings fell 12% to $3.46 billion or $1.4 per diluted share due to an impairment charge.
- A $1.3 billion impairment charge due to a reduction in intangible value of the Gillette brand also forced P&G to cut back its FY2024 earnings projection.
The Procter & Gamble Company’s (PG) sales rose, driven by higher prices, but a $1.3 billion impairment charge due to Gillette trimmed earnings for the three months ending December. P&G stock was up over 4% in early trading.
The maker of Tide and Tampax reported net earnings of $3.46 billion or $1.4 per diluted share, missing analyst estimates and down roughly 12% from the year-ago quarter. Higher prices propelled net sales 3% to $21.4 billion, though a shade under the $21.6 billion analyst consensus compiled by Visible Alpha.
The charge accrued on account of the “reduction in the estimated fair value of the Gillette” brand also forced P&G to cut its earnings projections for fiscal year 2024. The company now expects earnings for the full fiscal year in the range of a 1% decline to in-line earnings compared to FY2023 EPS of $5.90, as opposed to the six to nine percent growth it estimated before.
| Q2 FY 2024 | Analyst Estimates for Q2 FY2024 | Q2 FY 2023 | Year-over-year % change | |
|---|---|---|---|---|
| Revenue | $21.4 billion | $21.6 billion | $20.8 billion | 3% |
| Earnings Per Share | $1.4 | $1.59 | $1.59 | (12%) |
| Net Income | $3.46 billion | $4.2 billion | $3.9 billion | (12%) |