Procter & Gamble beats by $0.05, beats on revs; guides FY17 EPS below consensus
- Reports Q4 (Jun) earnings of $0.79 per share, $0.05 better than the Capital IQ Consensus of $0.74; revenues fell 2.7% year/year to $16.1 bln vs the $15.83 bln Capital IQ Consensus.
- Core EPS results declined due to increased marketing investments, lower gains from minor brand divestitures, and a higher core effective tax rate versus the comparison period. Excluding the impact of foreign exchange, currency-neutral core earnings per share decreased eight percent. P&G delivered 145% adjusted free cash flow productivity for the quarter.
- Co issues downside guidance for FY17, sees EPS of $3.67 vs. $3.97 Capital IQ Consensus Estimate. P&G said it is projecting organic sales growth of approximately 2% for fiscal 2017. The Company expects the combined headwinds of foreign exchange and minor brand divestitures to reduce sales growth by about one percentage point. As a result, P&G estimates all-in sales growth of about 1% for fiscal 2017.
- P&G noted that core EPS growth in the first quarter of fiscal 2017 will be disproportionately affected by foreign exchange headwinds, which do not fully annualize until later in the year, and the impact of lost finished product sales to its Venezuelan subsidiaries.