Earnings Overview
P&G announced a third-quarter net income of $3.75 billion, or $1.52 per share, marking an increase from $3.4 billion, or $1.37 per share, a year earlier. This performance exceeded the analysts’ expectation of $1.41 per share, as surveyed by LSEG. However, revenue for the quarter was reported at $20.2 billion, slightly below the anticipated $20.41 billion.
Sales Performance by Segment
Revenue performance varied across business segments. The Fabric & Home Care segment saw a 2% increase to $7.17 billion. In contrast, the Baby, Feminine & Family Care segment experienced a decline of 2%, totaling $4.34 billion. Additionally, the Beauty segment reported a 2% increase, generating $3.55 billion in sales.
Full-Year Outlook and Market Reaction
Despite the revenue shortfall, P&G has raised its full-year earnings guidance, now expecting core EPS growth of 10% to 11%, up from an initial projection of 8% to 9%. The revenue growth outlook remains unchanged at 2% to 4%. Shares of P&G initially slipped by 0.5% in premarket trading but subsequently rose slightly, reflecting a cautiously optimistic investor sentiment.
Market Forecast
The outlook for P&G stock appears cautiously bullish in the short term. With a stronger-than-expected earnings report and an upward revision in profit forecasts, P&G seems well-positioned to maintain steady growth. However, the cautious revenue outlook and mixed segment performance suggest that investors should keep a watchful eye on upcoming developments.
