Procter & Gamble (PG) Tops Q4 EPS by 4c, Offers Guidance

July 30, 2021 6:57 AM EDT

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Procter & Gamble (NYSE: PG) reported Q4 EPS of $1.13, $0.04 better than the analyst estimate of $1.09. Revenue for the quarter came in at $18.95 billion versus the consensus estimate of $18.32 billion.

Fiscal Year 2022 Guidance:

P&G expects fiscal year 2022 all-in sales growth in the range of two to four percent versus the prior fiscal year. Foreign exchange is expected to be neutral to modestly positive to all-in sales growth. The Company expects organic sales growth also in the range of two to four percent.

P&G expects fiscal 2022 GAAP diluted net earnings per share growth in the range of six to nine percent versus fiscal 2021 GAAP EPS of $5.50. Core earnings per share growth for fiscal 2022 is expected to be in the range of three to six percent versus fiscal 2021 core EPS of $5.66.

The Company said its current outlook estimates headwinds of approximately $1.9 billion after-tax from higher commodity costs and freight costs, partially offset by foreign exchange benefits of approximately $100 million after-tax. The combined impact of commodities, freight and foreign exchange is approximately a $0.70 per share headwind to fiscal year 2022 EPS, or a 12 percentage point headwind to EPS growth.

The Company is not able to reconcile its forward-looking non-GAAP cash flow and tax rate measures without unreasonable efforts because the Company cannot predict the timing and amounts of discrete items, such as acquisitions, divestitures, or impairments, which could significantly impact GAAP results.

P&G said it expects core effective tax rate in the range of 18% to 19% in fiscal 2022.

Capital spending is estimated to be in the range of 4% to 5% of fiscal 2022 net sales.

P&G is targeting adjusted free cash flow productivity of 90% and expects to pay over $8 billion in dividends and repurchase $7 billion to $9 billion of common shares in fiscal 2022.

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

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