Procter & Gamble Company (P&G) reported solid third-quarter earnings on Friday, indicating the company’s resilience amid ongoing economic headwinds.
In the quarter, P&G achieved sales growth of 1% year-over-year to $20.195 billion, marginally below analyst estimates. However, the company outperformed expectations with adjusted EPS of $1.52, surpassing the consensus estimate of $1.41.
P&G affirmed its guidance for fiscal year 2024, projecting organic sales growth of 4%-5% and all-in sales growth of 2%-4%. Notably, the company raised its EPS growth outlook from -1% to a range of 1% to 2%, assuming fiscal 2023 EPS of $5.90.
P&G also revised its adjusted EPS growth outlook upwards from 8%-9% to 10%-11% compared to the previous year. Despite facing unfavorable foreign exchange rates estimated to impact $600 million after tax, the company expects favorable commodity costs to offset this with a benefit of $900 million after tax for the fiscal year.
“We delivered solid sales and strong earnings growth in the third quarter despite multiple headwinds, enabling us to raise our EPS growth guidance and maintain our top-line outlook for the fiscal year,” commented Board Chairman, President, and CEO Jon Moeller.
Following the earnings announcement, several analysts adjusted their price targets for P&G. Jefferies raised its target from $175 to $182, while Deutsche Bank lowered its target from $172 to $171. Both analysts maintained a Buy rating on the stock.
