Procter & Gamble (NYSE:PG) Co shares stumbled Friday morning after the consumer goods producer's full-year fiscal 2023 earnings guidance came in below expectations in the wake of increased transportation and commodity costs.
In its fiscal fourth-quarter earnings released before the bell on Friday, P&G projected average fiscal 2023 earnings per share of $5.93, short of analysts' estimate of $6.02, as the company anticipated taking a $3.3 billion hit due to higher commodity and shipping costs, along with a stronger dollar.
Specifically, prices of commodities used in consumer goods products, such as pulp, resin and polypropylene, have surged due to the pandemic and the Russia-Ukraine war, among other factors, according to Reuters.
Shares of P&G were down 3.3% in premarket trading.
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"As we look forward to fiscal 2023, we expect another year of significant headwinds," CEO Jon Moeller said in a statement.
Meanwhile, in the three months ended June 30, P&G reported adjusted EPS of $1.21 per share, just short of analyst estimates of $1.22 per share. Net sales increased 3% to $19.4 billion, due in part to the rising prices of its detergents and home care products.
Prices of P&G brands rose an average of 8%, while sales volume fell about 1%. Looking ahead, the company forecast organic sales growth of between 3% and 5% in fiscal 2023, down from 7% in fiscal 2022.
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