Procter & Gamble beats by $0.02, reports revs in-line; co also raises organic growth guidance, maintains Core EPS guidance (106.01)
- Reports Q3 (Mar) earnings of $1.06 per share, $0.02 better than the S&P Capital IQ Consensus of $1.04. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased five percent.
- Unfavorable foreign exchange was a five percent hurt to sales for the quarter. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased five percent driven by a two percent increase in organic shipment volume. Pricing added two percentage points to organic sales. Positive mix impact was a one percent help to organic sales due to strong growth in developed markets and disproportionate growth of premium priced products, such as SK-II and Tide Pods.
- Beauty segment organic sales increased nine percent versus year ago.
- On a currency-neutral basis, core gross margin increased 60 basis points driven by 160 basis points of productivity savings and 80 basis points of pricing benefit, partially offset by 70 basis points of commodity cost increases, 30 basis points of innovation reinvestments and 80 basis points of unfavorable product mix and other impacts.
- The Company now estimates fiscal 2019 all-in sales growth in the range of in-line to up one percent vs prior guidance of down one to up one percent. P&G increased its guidance for organic sales growth from a range of two to four percent to four percent for fiscal 2019.
- The Company maintained its guidance ranges on the bottom line. On an all-in GAAP basis, diluted net earnings per share are expected to increase seventeen to twenty-four percent versus the prior year. Core earnings per share are expected to increase three to eight percent versus fiscal 2018 Core EPS of $4.22