Procter & Gamble (NYSE:PG) Company traded up slightly in premarket trading after the consumer-product giant’s earnings and revenue for its fiscal third quarter handily beat Wall Street’s expectations.
Customers have been seeing a steady rise in the costs of Tide detergent, Pampers and other supplies as P&G raised prices by about 10% across its various brands in the March quarter. It was the second straight quarter with a 10% year-over-year increase as the Cincinnati-based consumer product giant passed along higher costs and widened its profit margins.
For the period ended March 31, P&G reported earnings of $3.42 billion, or $1.37 a share, compared with $3.37 billion, or $1.33 a share in the same period a year earlier. The consensus earnings estimate was $1.32 per share.
The company saw revenue of 20.1 billion, up 4% from 19.4 billion in the fiscal third quarter of 2022. Analysts expected revenue of $19.3 billion.
Organic revenue, which strips out the effects of foreign-exchange conversion, acquisitions and divestitures, rose 7%.
P&G also boosted its forecast for organic sales growth for fiscal 2023 to 6% from its earlier forecast of 4% to 5%. The company said it now expects fiscal 2023 earnings to be at the lower end of its previous guidance range of $5.81 to $6.04 per share and expects revenue of approximately $80.99 billion.
“We delivered strong results in the third quarter of fiscal year 2023 in what continues to be a very difficult cost and operating environment,” P&G CEO Jon Moeller said in a statement.
“Our team’s strong execution of our strategies and our progress through three quarters enable us to raise our fiscal year outlook for sales growth and cash return to shareowners and maintain our guidance range for EPS growth despite continued cost and foreign exchange headwinds.”
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