Procter & Gamble Q1 Results Beat View; Affirms FY17 Outlook

(RTTNews) - Consumer goods giant Procter & Gamble Co. (PG) on Tuesday reported a 4 percent increase in profit for the first quarter from last year on a slight decline in sales. However, both revenue and core earnings per share for the quarter beat analysts' estimates.

In addition, the Cincinnati, Ohio-based maker of Tide detergent, Crest toothpaste and Gillette shaving razors affirmed its financial outlook for fiscal 2017.

For the first quarter, net earnings attributable to P&G rose to $2.71 billion or $0.96 per share from $2.60 billion or $0.91 per share in the prior-year period.

Core earnings from continuing operations were $1.03 per share, compared to $0.98 per share last year. On a currency-neutral basis, core earnings per share increased 12 percent.

On average, analysts polled by Thomson Reuters expected the company to earn $0.98 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter were $16.52 billion, down slightly from $16.53 billion in the year-ago quarter. Analysts had a consensus revenue estimate of $16.49 billion.

Sales for the quarter include a negative three percentage impact from foreign exchange. Organic sales increased 3 percent, driven by a three percent increase in organic shipment volume, and increased in all five business segments. All-in volume increased two percent.

Gross margin expanded 30 basis points to 51.0 percent, while operating margin was flat with last year at 22.8 percent.

Looking ahead to fiscal 2017, P&G affirmed its outlook for core earnings per share growth of mid-single digits versus fiscal 2016 core earnings per share of $3.67 and also maintained its projection for organic sales growth of about 2 percent.

P&G expects the combined headwinds of foreign exchange and minor brand divestitures to reduce sales growth for the year by about one percentage point. As a result, the company continues to estimate all-in sales growth of about one percent for fiscal 2017.

Analysts expect the company to report earnings of $3.88 per share for the year on revenues of $66.01 billion.