The Procter & Gamble CompanyPG enjoys strong brand recognition with its consumer products sold in more than 180 countries. Its 23 Billion Dollar Brands like Tide, Pampers, Oral-B, that generate$1 billion to over $10 billion in sales annually, are some of the world's most commonly used household names.
However, PG has been struggling to grow sales which has been overshadowing its relatively better margins. Significant negative currency impact, market share erosion and lower consumption in several countries due to pricing action, and macroeconomic headwinds in many key markets have been hurting its top line.
Nevertheless, P&G is in the process of turning around its business through divesture of underperforming brands, aggressive cost savings, making focused investments in innovation and go-to-market capabilities and improved execution.
Investors should also note the recent earnings estimate revisions for PG, as the consensus estimate has been moving lower. However, PG has a decent earnings history. P&G has delivered positive earnings surprise in three of the past four quarters, making for an average earnings surprise of 3.12%.
Currently, PG has a Zacks Rank #3 (Hold), but that could definitely change following P&G's earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: PG reported core earnings of $0.98 per share, beating our consensus estimate of 94 cents/share. Investors should note that these figures take out stock option expenses.
Revenues: PG reported revenues of $16.52 billion. This missed our consensus estimate of $17.0 billion.
Key Stats to Note: Organically, excluding the impact of acquisitions, divestitures and foreign exchange, revenues declined 1% as benefit from pricing and mix was offset by lower shipment volume. Currency impact hurt sales by 9%.
Stock Price: Shares declined 1% in pre-market trading .
Check back later for our full write up on this PG earnings report later!