- Procter & Gamble beat Wall Street’s expectations for its quarterly earnings and revenue.
- But the company issued a fiscal 2024 outlook that fell short of Wall Street’s expectations.
- For the fifth consecutive quarter, P&G’s volume fell.
Tide laundry detergent is shown on display in Compton, California, U.S., January 10, 2017.
Mike Blake | Reuters
But the company released a gloomy outlook for its fiscal 2024 sales that fell short of Wall Street’s estimates.
Still, shares of the company rose 1.2% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.37 vs. $1.32 expected
- Revenue: $20.55 billion vs. $19.98 billion expected
The Tide detergent owner reported fiscal fourth-quarter net income of $3.38 billion, or $1.37 per share, up from $3.05 billion, or $1.21 per share, a year earlier.
Net sales rose 5% to $20.55 billion. Its organic revenue, which strips out the impact of acquisitions and divestitures, increased 8% in the quarter.
For roughly two years, P&G has been raising prices on its products to mitigate higher commodity costs. But customers haven’t been as willing to stick with P&G’s brands, leading to five consecutive quarters of volume declines. Volume excludes the impact of currency and pricing changes to reflect demand.
P&G’s volume fell 1% during the quarter.
For fiscal 2024, P&G is forecasting that its revenue will grow 3% to 4%, lower than Wall Street’s expectations of 4.5% sales growth. The company is also projecting earnings per share growth of 6% to 9%, which is on the lower end of analysts’ forecast of 8.8%.