October 4, 2023

  • 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

Procter & Gamble on Friday reported quarterly earnings and revenue that beat analysts’ expectations, thanks to price hikes for products like Crest toothpaste and Pampers diapers.

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%.

Leave a Reply

Your email address will not be published. Required fields are marked *