Procter & Gamble on Friday topped analysts’ estimates for quarterly earnings and revenue as consumers bought more premium health care and personal care products.
Its shares jumped less than 1% in early trading on the news.
Here’s what the company reported for the quarter ended June 30 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.13 vs. $1.08 expected
- Revenue: $18.95 billion vs. $18.41 billion expected
P&G reported net income for the period ended June 30 of $2.9 billion, or $1.13 per share, compared with $2.8 billion, or $1.07 per share, a year earlier. Analysts surveyed by Refinitiv were expecting earnings per share of $1.08.
Net sales rose 7% to $18.9 billion from $17.7 billion a year earlier. That beat Wall Street expectations for $18.41 billion. Organic sales climbed 4%.
For fiscal 2022, P&G is calling for fiscal year sales to grow 2% to 4% from the prior year. Organic sales are forecast to rise in the same range.
P&G announced Thursday evening that current chief operating officer Jon Moeller will become CEO in November, replacing David Taylor, who will become executive chairman of the company’s board of directors. Taylor, 62, had been CEO since Nov. 1, 2015.
The company — whose portfolio includes Tide detergent, Charmin toilet paper and Pampers diapers — is on track to raise prices on some products this autumn in response to higher commodity costs. Rival Kimberly-Clark, which makes Huggies, has also announced price hikes on various items.
After the price increases go into effect, P&G is planning to hold market share by trying to increase consumers’ perception of the value of its products and introducing new or upgraded items. Companies such as P&G and Kimberly-Clark are betting consumers will be willing to pay more for the brand version, instead of opting for a cheaper private label.
P&G shares are up less than 1% year to date. The company has a market cap of $341.4 billion.
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