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Key Takeaways
- Consumer products giant Procter & Gamble reported third-quarter earnings Friday that beat estimates, though its revenue missed expectations.
- P&G also maintained its full-year outlook for sales growth, and increased projections for earnings per share.
- Shares dropped slightly following the earnings report’s release.
Procter & Gamble (PG) reported third-quarter earnings Friday that beat estimates, though its revenue missed expectations, sending shares 1% lower in pre-market trading.
P&G reported adjusted net income of $3.76 billion and earnings per share (EPS) of $1.52, which both rose about 11% from the year-ago period and beat analyst estimates compiled by Visible Alpha. However, revenue increased 1% year-over-year to $20.2 billion, missing estimates.
Analysts had suggested ahead of Friday’s earnings report that slowing price increases could hold back P&G’s revenue growth. The company reported price increases of about 3%, just above the 2.75% analysts had predicted, and the smallest hike since the second quarter of 2022.
Analysts slightly lowered their revenue estimates ahead of the the earnings.
Despite the slightly-above-expected price hike, the company still saw strong organic sales, with sales increasing in every segment except Baby and Feminine Care.
| Q3 2024 | Analyst Estimates for Q3 2024 | Q3 2023 | Year-over-year (%) change | |
|---|---|---|---|---|
| Revenue | $20.2B | $20.43B | $20.07B | 1% |
| Adjusted Earnings Per Share | $1.52 | $1.41 | $1.37 | 11% |
| Adjusted Net Income | $3.76B | $3.47B | $3.40B | 10.59% |
P&G also adjusted some of its guidance for the full fiscal year, raising EPS expectations to an increase 1% to 2% above the fiscal 2023 mark of $5.90, compared to prior projections of a 1% decline to flat. The company affirmed its guidance for net sales, continuing to project 2% to 4% growth compared to last year.
The Fabric and Home Care segment was P&G’s largest in terms of revenue across fiscal 2023, with brands like Tide, Gain, and Dawn dish soap representing 35% of net sales. Baby and Feminine Care was the second-largest sector in 2023, with Pampers and Tampax among others making up one-quarter of P&G’s sales.
P&G shares dropped about 1.3% in pre-market trading to $155.31 as of about 8:20 a.m. ET following the release. Still, shares have gained close to 6% year to date.