Procter & Gamble (P&G) reported mixed results in its fiscal third-quarter earnings, surpassing earnings expectations but falling short on revenue targets. Shares rose slightly less than 1% in premarket trading despite the revenue miss.
At 11:24 GMT, Procter & Gamble is trading $156.50, down $0.79 or -0.50%.
P&G announced a third-quarter net income of $3.75 billion, or $1.52 per share, marking an increase from $3.4 billion, or $1.37 per share, a year earlier. This performance exceeded the analysts’ expectation of $1.41 per share, as surveyed by LSEG. However, revenue for the quarter was reported at $20.2 billion, slightly below the anticipated $20.41 billion.
Revenue performance varied across business segments. The Fabric & Home Care segment saw a 2% increase to $7.17 billion. In contrast, the Baby, Feminine & Family Care segment experienced a decline of 2%, totaling $4.34 billion. Additionally, the Beauty segment reported a 2% increase, generating $3.55 billion in sales.
Despite the revenue shortfall, P&G has raised its full-year earnings guidance, now expecting core EPS growth of 10% to 11%, up from an initial projection of 8% to 9%. The revenue growth outlook remains unchanged at 2% to 4%. Shares of P&G initially slipped by 0.5% in premarket trading but subsequently rose slightly, reflecting a cautiously optimistic investor sentiment.
The outlook for P&G stock appears cautiously bullish in the short term. With a stronger-than-expected earnings report and an upward revision in profit forecasts, P&G seems well-positioned to maintain steady growth. However, the cautious revenue outlook and mixed segment performance suggest that investors should keep a watchful eye on upcoming developments.
James Hyerczyk is a U.S. based seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, specializing in chart patterns and price movement. He is the author of two books on technical analysis and has a background in both futures and stock markets.