Procter & Gamble Co. Earnings Cheat Sheet: Margins Suffer for Five Quarters Straight, but Net Income Climbs

S&P 500 (NYSE:SPY) component Procter & Gamble Co. (NYSE:PG) reported its results for the fourth quarter. Procter & Gamble Co. sells and markets consumer products such as pharmaceuticals, cleaning supplies, personal care, and pet supplies in more than 180 countries.

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Procter & Gamble Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Procter & Gamble Co. rose to $2.51 billion (84 cents per share) vs. $2.19 billion (71 cents per share) in the same quarter a year earlier. This marks a rise of 14.9% from the year earlier quarter.

Revenue: Rose 10.2% to $20.86 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PG beat the mean analyst estimate of 82 cents per share. Analysts were expecting revenue of $20.63 billion.

Quoting Management: “We are pleased with the strong top- and bottom-line performance in the quarter,” said Chairman of the Board, President and Chief Executive Officer Bob McDonald. “We delivered organic sales growth of five percent and earnings per share growth of 18 percent in a challenging environment, driven by our ongoing commitment to make a difference in the everyday lives of the world’s consumers.”

Key Stats:

Last quarter marked the fifth straight quarter that the company saw shrinking gross margins as gross margin fell 1.2 percentage points to 48.3% from the year earlier quarter. Over that time, margins have contracted on average 1.2 percentage points per quarter on a year-over-year basis.

Revenue has risen the past four quarters. Revenue increased 5.5% to $20.23 billion in the third quarter. The figure rose 1.5% in the second quarter from the year earlier and climbed 1.6% in the first quarter from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 96 cents versus a mean estimate of net income of 97 cents per share.

Net income has dropped 4.2% year over year on average across the last five quarters. Performance was hurt by a 28.5% decline in the second quarter from the year earlier quarter.

Competitors to Watch: Church & Dwight Co., Inc. (NYSE:CHD), Colgate-Palmolive Company (NYSE:CL), The Clorox Company (NYSE:CLX), Henkel AG & Co. (HEN3), Kimberly-Clark Corporation (NYSE:KMB), Johnson & Johnson (NYSE:JNJ), Teva Pharmaceutical Industries Ltd (NASDAQ:TEVA), The Stephan Co. (SPCO), CCA Industries, Inc. (AMEX:CAW), and Zep, Inc. (NYSE:ZEP).

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(Source: Xignite Financials)