Stronger Dollar Weighs on Procter & Gamble Earnings
Procter & Gamble reported uarterly results on Thursday that were largely in line with expectations, but net income was hurt by a stronger dollar.
After the earnings announcement, the world's
largest household products maker's shares rose in pre-market trading before the opening bell. (Click here to get the latest quotes for PG.)
P&G earned $1.06 per share in the fiscal first quarter on a "core'' basis, which excludes charges, up from $1.01 per share a year earlier. Analysts, on average, expected it to earn 96 cents per share, according to Thomson Reuters I/B/E/S.
Revenue fell 4 percent to $20.74 illion from $21.53 billion a year ago, including a negative impact from foreign exchange.
Analysts had expected P&G to post earnings excluding items of 96 cents a share on $20.78 billion in revenue, according to a Thomson Reuters estimate.
P&G, which came under pressure after activist investor William Ackman bought the company's shares this summer, maintained its full-year guidance to $3.80 to $4 a share. Analysts' average forecast for the year is $3.91 per share.
The company noted, however, that foreign exchange is expected to reduce sales growth by two percent to three percent for the year.
Ackman, whose Pershing Square Capital Management is P&G's 10th-largest shareholder, has publicly blamed P&G's top brass for high costs and declining revenue while saying that he understands the board wants to give its leaders time to repair years of damage.
"There's certainly ... a high degree of uncertainty as we round the corner here in the U.S. and with the situation still in Europe, and that degree of uncertainty certainly affects spending both of companies and individuals," Jon Moeller, P&G's chief financial officer, told CNBC's "Squawk Box" on Thursday. "Given that, we're trying to focus on those things that we can control ... and that's again a very strong focus on cost savings."
The company is also focusing on expanding the company's footprint in emerging markets, he said.
An earlier version of this story incorrectly stated P&G's earnings for the first fiscal quarter were 96 cents a share, and that year-ago revenues were $21.9 billion. In fact, P&G's earnings were $1.06 excluding items (96 cents on a diluted basis) versus $1.01 a year ago, while year ago revenues were actually $21.53 billion.
—Reuters contributed to this report