Procter & Gamble (PG) Hits Four-Year High after Earnings

By
A A A
Share |

At last, some good earnings news.

Procter & Gamble ( PG ) easily beat forecasts for its fiscal first-quarter earnings today, pushing the stock above $70 a share for the first time since September 2008.

The company's core earnings of $1.06 per share exceeded its own estimates of 97 cents a share. That was up five cents from the $1.01 per share in core earnings P&G brought in a year ago.

However, core earnings don't take into account unfavorable foreign exchange rates weighing on the company's profits. When adding in the financial hit P&G took due to exchange rates, earnings were down 6.9% from a year ago and revenue declined 4%. Net sales for the quarter also slipped 3.7%.

Fortunately for P&G, investors chose to focus on the core earnings. That was enough to push the stock up nearly 3% - a sizable one-day gain for a stock that, until today, had traded in the same $58-to-$69 range for the past three years.

In an earnings season marred by high-profile misses from the likes of Google ( GOOG ), Microsoft ( MSFT ), McDonald's ( MCD ) and Chipotle ( CMG ) , Procter & Gamble's beat stands as a much-needed bright spot - even if the earnings were technically down from a year ago.

*Disclosure: I personally own shares of Procter & Gamble.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: CMG , GOOG , MCD , MSFT , PG

Wyatt Investment Research

Wyatt Investment Research

More from Wyatt Investment Research:

Related Videos

Stocks

Referenced

Most Active by Volume

72,157,294
  • $61.36 ▼ 2.65%
56,535,455
  • $34.92 ▼ 3.78%
49,608,479
  • $4.42 ▼ 3.07%
49,328,445
  • $25.91 ▼ 3.18%
48,932,529
  • $16.37 ▲ 0.49%
38,182,422
  • $3.17 ▼ 1.55%
33,297,581
  • $73.86 ▲ 1.37%
32,790,375
  • $47.43 ▼ 1.02%
As of 4/23/2014, 04:07 PM