Procter & Gamble Boosts FY21 Outlook As Q1 Results Top View

Consumer goods giant Procter & Gamble Co. (PG) on Tuesday reported a 19 percent increase in profit for the first quarter of fiscal 2021 from last year, driven by net sales growth across its operating segments and improved operating margin.

Both revenue and core earnings per share for the quarter beat analysts’ estimates. Looking ahead, the company raised its earnings and revenue growth guidance for the full-year 2021. Shares of the company are gaining more than 2 percent in pre-market activity.

“We delivered another strong quarter of organic sales growth, core earnings per share and cash returned to shareowners, enabling us to increase our outlook for fiscal year results,” said David Taylor, Chairman, President and Chief Executive Officer.

Net earnings attributable to P&G for the quarter rose to $4.28 billion or $1.63 per share from $3.59 billion or $1.36 per share in the prior-year quarter.

Core earnings per share for the quarter were $1.63, compared to $1.37 per share last year. On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $1.41 per share for the quarter. Analysts’ estimates typically exclude special items.

Currency-neutral core earnings per share increased 22 percent for the quarter.

Net sales for the quarter rose 9 percent to $19.32 billion from $17.80 billion in the same quarter last year. Analysts had a consensus revenue estimate of $18.35 billion.

Excluding the net impacts of foreign exchange, acquisitions and divestitures, organic sales also increased 9 percent.

Looking ahead to fiscal 2021, the company raised its guidance for core earnings per share growth to a range of 5 to 8 percent from a range of 3 to 7 percent, from the base fiscal 2020 core earnings of $5.12 per share. This implies core earnings in a range of $5.38 to $5.53 per share.

The company also raised its outlook for all-in sales growth to a range of 3 to 4 percent from a range of 1 to 3 percent. It increased guidance for organic sales growth to a range of 4 to 5 percent from a range of 2 to 4 percent.

The Street expects the company to report earnings of $5.40 per share on revenue growth of 2.8 percent to $72.93 billion for the year.

Additionally, P&G said it expects to pay approximately $8 billion in dividends in fiscal 2021. The Company increased its outlook for common stock repurchase to a range of $7 billion to $9 billion from a range of $6 billion to $8 billion in fiscal 2021.

Combined, P&G now plans to return $15 billion to $17 billion of cash to shareholders in this fiscal year.

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