Procter & Gamble Earnings: Here’s Why Shares are Down Now

Procter & Gamble Co. (NYSE:PG) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.51%.

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Procter & Gamble Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.32% to $0.99 in the quarter versus EPS of $0.94 in the year-earlier quarter.

Revenue: Rose 2% to $20.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Procter & Gamble Co. reported adjusted EPS income of $0.99 per share. By that measure, the company beat the mean analyst estimate of $0.96. It missed the average revenue estimate of $20.74 billion.

Quoting Management: “We delivered another quarter of steady progress,” said Chairman, President, and Chief Executive Officer, Bob McDonald. “Top-line growth was in line with our expectations. Market shares improved broadly. Strong cost savings enabled us to exceed our outlook on the bottom line. We increased our dividend earlier this month, and we are now projecting to repurchase $6 billion in stock, which is at the high end of our estimated range. We expect further top-line improvement in the fourth quarter, driven by innovation and portfolio expansion, enabled by continued productivity improvement.”

Key Stats (on next page)…

Revenue decreased 7.11% from $22.18 billion in the previous quarter. EPS decreased 18.85% from $1.22 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.85 to a profit $0.81. For the current year, the average estimate has moved up from a profit of $3.97 to a profit of $4.05 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)