Procter & Gamble (PG) is defying the odds on earnings day, for now.
The stock rose about 3% in premarket trading on Friday as the Tide maker beat earnings and reiterated its outlook, despite fresh consumer uncertainty and costs stemming from the Iran conflict.
“The consumer is relatively stable,” P&G CFO Andre Schulten told Yahoo Finance. “We see the bifurcation that we’ve been mentioning before, so you have some consumers looking for value in larger pack sizes. They shop in clubs, they shop online and at the big box retailers. And then you have some level of consumers that are looking for value in smaller pack sizes. They’re looking for smaller cash outlays and promotions. That dynamic continues,” added Schulten.
Whether P&G will be back in this seat three months from now is up for debate.
“We expect rising oil costs to weigh on margins as well, even though we expect the headwinds to build over the coming quarters given the lag with which such changes typically hit PG’s P&L,” Goldman Sachs analyst Bonnie Herzog said.
Net sales: $21.24 billion, +7.4% from the prior year vs. $20.5 billion estimate
Organic sales growth: +3% vs. +1.86% estimate
Beauty segment organic revenue growth: +7% vs. +2.47% estimate
Grooming segment organic revenue growth: +1% vs. +1.45% estimate
Healthcare segment organic revenue growth: +2% vs. +1.77% estimate
Fabric and home care segment organic revenue growth: +3% vs. +1.98% estimate
Baby, feminine, and family care segment organic revenue growth: +3% vs. +1.47% estimate
Gross margin: 49.5% vs. 51.1% estimate
Adjusted earnings per share: $1.59, +2% from the prior year vs. $1.56 estimate
P&G reiterated its full-year organic sales growth forecast of 0% to +4%, compared with a consensus estimate of +1.45%. The company also reaffirmed its full-year outlook for earnings per share between $6.83 and $7.09, versus estimates of $6.95.
Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.
Click here for in-depth analysis of the latest stock market news and events moving stock prices
Read the latest financial and business news from Yahoo Finance