P&G Reports Mixed Q3 Results, Raises Full-Year Outlook

James Hyerczyk
Updated: Apr 19, 2024, 14:07 GMT+00:00

Key Points:

  • P&G's Q3 earnings beat, but revenue slightly off target.
  • Full-year earnings projection rises despite revenue miss.
  • Stock initially dips then slightly recovers in premarket.
Procter & Gamble Earnngs

In this article:

P&G Announces Mixed Results

Procter & Gamble (P&G) reported mixed results in its fiscal third-quarter earnings, surpassing earnings expectations but falling short on revenue targets. Shares rose slightly less than 1% in premarket trading despite the revenue miss.

At 11:24 GMT, Procter & Gamble is trading $156.50, down $0.79 or -0.50%.

Daily Procter & Gamble (P&G)

Earnings Overview

P&G announced a third-quarter net income of $3.75 billion, or $1.52 per share, marking an increase from $3.4 billion, or $1.37 per share, a year earlier. This performance exceeded the analysts’ expectation of $1.41 per share, as surveyed by LSEG. However, revenue for the quarter was reported at $20.2 billion, slightly below the anticipated $20.41 billion.

Sales Performance by Segment

Revenue performance varied across business segments. The Fabric & Home Care segment saw a 2% increase to $7.17 billion. In contrast, the Baby, Feminine & Family Care segment experienced a decline of 2%, totaling $4.34 billion. Additionally, the Beauty segment reported a 2% increase, generating $3.55 billion in sales.

Full-Year Outlook and Market Reaction

Despite the revenue shortfall, P&G has raised its full-year earnings guidance, now expecting core EPS growth of 10% to 11%, up from an initial projection of 8% to 9%. The revenue growth outlook remains unchanged at 2% to 4%. Shares of P&G initially slipped by 0.5% in premarket trading but subsequently rose slightly, reflecting a cautiously optimistic investor sentiment.

Market Forecast

The outlook for P&G stock appears cautiously bullish in the short term. With a stronger-than-expected earnings report and an upward revision in profit forecasts, P&G seems well-positioned to maintain steady growth. However, the cautious revenue outlook and mixed segment performance suggest that investors should keep a watchful eye on upcoming developments.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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