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Procter & Gamble (PG) Tops Q1 EPS by 11c

October 18, 2023 6:56 AM EDT

Procter & Gamble (NYSE: PG) reported Q1 EPS of $1.83, $0.11 better than the analyst estimate of $1.72. Revenue for the quarter came in at $21.9 billion versus the consensus estimate of $21.57 billion.

GUIDANCE:

Procter & Gamble sees FY2024 EPS of $6.25-$6.43, versus the consensus of $6.07.

P&G adjusted its guidance range for fiscal 2024 all-in sales growth to be in the range of two to four percent versus the prior year. Foreign exchange is now expected to be a headwind of approximately one to two percentage points to all-in sales growth. The Company maintained its outlook for organic sales growth in the range of four to five percent.

P&G maintained its fiscal 2024 diluted net earnings per share growth in the range of six to nine percent versus fiscal 2023 EPS of $5.90. This outlook equates to a range of $6.25 to $6.43 per share. The Company highlighted that it is maintaining the EPS range despite an incremental $600 million dollars after tax of foreign exchange headwinds since its initial fiscal 2024 guidance in late July.

The Company said it expects tailwinds of approximately $800 million after tax due to favorable commodity costs for fiscal year 2024. However, unfavorable foreign exchange rates are now expected to be a headwind of approximately $1 billion after tax. The Company continues to expect the net impact of interest expense and interest income to be a headwind of approximately $200 million after tax.

The Company is unable to reconcile its forward-looking non-GAAP cash flow and tax rate measures without unreasonable efforts given the unpredictability of the timing and amounts of discrete items, such as acquisitions, divestitures, or impairments, which could significantly impact GAAP results.

P&G now expects an effective tax rate of approximately 21% in fiscal 2024.

Capital spending is now estimated to be approximately 4.5% of fiscal 2024 net sales.

P&G continues to expect adjusted free cash flow productivity of 90% and expects to pay more than $9 billion in dividends and to repurchase $5 to $6 billion of common shares in fiscal 2024.

For earnings history and earnings-related data on Procter & Gamble (PG) click here.



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