Procter & Gamble beats by $0.02, reports revs in-line; reaffirms FY17 EPS guidance, lowers rev slightly (90.00)
- Reports Q3 (Mar) earnings of $0.96 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.94; revenues fell 1.0% year/year to $15.61 bln vs the $15.7 bln Capital IQ Consensus, including a negative two percent impact from foreign exchange. Organic sales increased one percent driven by a one percent increase in organic shipment volume. Pricing and mix had no net impact on sales for the quarter. All-in volume was unchanged including the impacts of minor brand divestitures. Core gross margin decreased 40 basis points, including 20 basis points of negative foreign exchange impacts. On a currency-neutral basis, core gross margin decreased 20 basis points as 210 basis points of productivity savings were more than offset by 100 basis points of unfavorable geographic and product mix, 80 basis points of commodity cost increases and 50 basis points of product reinvestments and other impacts.
- Co reaffirms guidance for FY17, sees EPS mid-single digit EPS growth from $3.67, excluding non-recurring items, vs. $3.85 Capital IQ Consensus. P&G said it is maintaining its guidance for organic sales growth in the range of two to three percent for fiscal 2017. Fiscal year to date, the Company is at the low end of this range. The Company expects the combined headwinds of foreign exchange and minor brand divestitures to reduce sales growth by two to three percentage points. As a result, P&G estimates all-in sales to be down one percent to in-line with the prior fiscal year, down from flat previously.
- "The third quarter macro environment was characterized by a slowdown in market growth, continued geopolitical disruptions and foreign exchange challenges," said David Taylor, Chairman, President and Chief Executive Officer. "Against this backdrop, we delivered modest organic sales growth and double-digit Core EPS growth, and we increased the quarterly dividend for the 61st consecutive year. Looking forward, we are maintaining our organic sales and Core EPS guidance ranges for the year and increasing our outlook for adjusted free cash flow productivity."