Procter & Gamble Q3 Core EPS Up 4%; Organic Sales Up 1%

(RTTNews) - The Procter & Gamble Company (PG) reported third-quarter net earnings per share of $0.95, an increase of two percent versus the prior year. Net earnings from continuing operations declined 1% year-over-year to $2.54 billion. Core earnings per share increased four percent to $1.00. On average, 20 analysts polled by Thomson Reuters expected the company to report profit per share of $1.00 for the quarter. Analysts' estimates typically exclude special items.

The company said the increase in core earnings was driven by increased net sales partially offset by a reduction in operating margin due to gains on real estate sales in the base period. Foreign exchange contributed approximately three percentage points to core earnings per share growth, and higher commodity costs reduced core earnings per share growth by approximately five percentage points.

Third-quarter net sales were $16.28 billion, an increase of four percent versus the prior year period driven by a four percent positive impact from foreign exchange. Organic sales increased one percent on organic volume growth of two percent. Analysts expected revenue of $16.22 billion, for the quarter.

For fiscal 2018, the company raised guidance for core EPS growth from a range of five to eight percent to a range of six to eight percent versus fiscal 2017 core EPS of $3.92. P&G said GAAP earnings per share are expected to decrease 31% to 33% versus fiscal year 2017 GAAP EPS of $5.59, which included the significant benefit from the Beauty Brands transaction that was completed in October 2016. The fiscal 2018 GAAP EPS estimate includes approximately $0.14 per share of non-core restructuring costs and $0.25 per share of non-core charges related to the Tax Act.

P&G said it is maintaining its guidance for organic sales growth in the range of two to three percent for fiscal 2018 and expects to be at the low end of the range. The company estimates all-in sales growth of approximately three percent for fiscal 2018, which includes a net benefit from the combination of acquisitions and divestitures and foreign exchange.

P&G also raised its outlook for adjusted free cash flow productivity from 90 percent to approximately 95 percent for the fiscal year.