P&G (PNG) Earnings Review

O Earnings Review P&G beat analysts' estimates by 2.3%, posting per share earnings (diluted) of $1.04 for the first quarter of its 2014 fiscal year (1QFY14). However, its stock price did not respond significantly to the results and remained stable over the next few days. The company's organic sales growth was consistent with last quarter's 4%, and the management maintained its organic sales growth guidance of 3-4% for FY14, and its earnings growth guidance of 7-9%. The company expects sales growth to be in the range of 1-2% in FY14, adjusted for a negative 2% impact from foreign exchange rate fluctuations. It also announced that the divestiture of its Western Europe bleach business would impact EPS by $0.07 in 2QFY14. Extracts from Earnings Release for 1QFY14 YoY Change in 1QFY14 Analysts' Estimates for 1QFY14 1QFY14 Organic Sales 4% Foreign Exchange -2% $21,205m $21,051m Net Sales 2% Diluted EPS $1.04 8% $1.017 Gross Margins 49% -110 bps 19.6% 50 bps Operating Margins Share Repurchases + Dividends $2.5 bn + $1.7 bn Forex rate fluctuations, higher commodity costs, and an unfavorable geographic and product mix contributed to the contraction in gross margins, but operating margins improved due to sales growth and lower spending on restructuring. Nonetheless, the contraction in gross margins partially offset the gains. SOURCES: BIDNESS Company Data, SEC filings, Bloomberg Professional Services etc. DISCLAIMER: Bidness Etc(TM) and related marks are owned by Bidness Etc. Any other trademarks appearing on this website are the property of their respective owners, and are not used to indicate the origin of goods or services offered or provided by Bidness Etc herein or to suggest approval for or affiliation with Bidness Etc.