P&G share price falls as revenue just misses expectations in earnings report

P&G experience fall inn share price amid slight disappointment at revenue figures

Procter & Gamble (NYSE:PG) share price falls despite earnings report showing earnings per share (EPS) being above, and revenue being similar to, expectations of analysts.

The consumer goods corporation announced a 1% increase in revenue, compared to last year, to $16.653 billion. This just misses forecasts by analysts polled by Thomson Reuters, which was $16.698 billion. EPS was $1.09, above forecasts by 1c, a 6% increase. P&G say this was “primarily due to a reduction in outstanding shares.”

The company also returned $4.3 billion to shareholders, $1.8 billion of which was paid through dividend payments, the rest through common stock repurchase. P&G also had a $3.6 billion operating cash flow for the quarter.

David Taylor, chairman, president and CEO of P&G, said that “First quarter sales and earnings results were in line with our going-in expectations and keep us on track to deliver our targets for the fiscal year”. Of the future, Taylor said “we will drive innovation, productivity and organization transformation to accelerate top-line growth while further expanding our industry-leading profit margins.”

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The results posted for their individual sectors were mixed, with beauty, health care and fabric and home care increasing sales, whereas grooming and baby, feminine and family care experienced a reduction in revenue.

P&G have estimated that the sales growth for the coming year should be 3-4% and they have maintained their 2-3% forecast for organic growth in the same period. The company have also noted that they maintain their expectations for EPS of 5-7% for the fiscal year despite “over $100 million of incremental commodity cost headwinds resulting from the hurricanes that impacted the Gulf Coast in September.”

P&G’s share price has fallen by over 3% in early trading to $88.61 at the time of writing. These results come as Nelson Peltz continues to contend a proxy vote that meant he did not manage to successfully join the board.