Procter & Gamble Backs FY20 Core EPS Growth Outlook - Quick Facts

(RTTNews) - While reporting financial results for the third quarter on Friday, consumer goods giant Procter & Gamble Co. (PG) maintained its full-year 2020 guidance for core earnings per share growth and organic sales growth, while trimming its outlook for all-in sales growth for the year, reflecting stronger headwinds from foreign exchange.

For fiscal 2020, the company continues to expect all-in net earnings per share growth in the range of 235 to 245 percent and core earnings per share to increase 8 to 11 percent.

However, the company now estimates full year all-in sales growth in the range of 3 to 4 percent, compared to the previous growth projection range of 4 to 5 percent.

The company maintained its organic sales growth outlook in the range of 4 to 5 percent.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $4.99 per share on sales growth of 4.10 percent to $70.45 billion for the year. Analysts' estimates typically exclude special items.

Additionally, the company expects to pay over $7.5 billion in dividends and repurchase $7 billion to $8 billion of common shares in fiscal 2020.

For the third quarter, the company reported that net earnings per share grew 8 percent to $1.12 from $1.04 last year. Core earnings per share were $1.17, compared to $1.06 last year, driven primarily by the increase in net sales and an increase in operating margin. Currency-neutral core earnings per share increased 15 percent for the quarter.

Net sales for the quarter grew 5 percent to $17.2 billion from a year ago. Unfavorable foreign exchange hurt sales by 2 percentage points for the quarter. Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased 6 percent, driven by a 6 percent increase in organic shipment volume.

Analysts expected the company to report earnings of $1.13 per share on sales of $17.46 billion for the quarter.