Procter & Gamble (PG) continues to have “strong earnings power,” driven by its innovation and favorable cost trends, BofA Securities said in a Friday note. The company reported fiscal Q3 core earnings per share of $1.52 per diluted share, up from $1.37 a year earlier, and net sales of $20.20 billion, increasing from $20.07. Procter & Gamble also raised its full-year core EPS outlook, while maintaining its sales growth guidance. BofA Securities said the company’s 3% organic sales growth in fiscal Q3 included a negative impact from the expected weak cold and flu season but was still supported by its business segments’ “better-than-modeled” performance during the period. “We see little risk to PG delivering FY guide with only one quarter remaining, implying good line of sight to 4Q organic sales,” the investment firm added. BofA Securities attributed the company’s higher earnings guidance for the year to commodity cost tailwinds and

The following is a summary of the The Procter & Gamble Company (PG) Q3 2024 Earnings Call Transcript: Financial Performance: Procter & Gamble reported Q3 2024 organic sales growth of 3%, with pricing contributing 3 points to the growth. Core earnings per share increased by 11% over the previous year to $1.52. The company’s core gross margin improved by 310 basis points and its operating margin expanded by 90 basis points. Adjusted free cash flow productivity stood at 87%. The company returned approximately $3.3 billion to shareholders through dividends and share repurchases in Q3, totalling over $10 billion in three quarters. Business Progress: Procter & Gamble witnessed organic sales growth in 8 out of 10 product categories, with notable performance in Home Care and Hair Care. The company executed growth across all its geographies and improved business in Greater China despite confronting challenges. P&G increased its dividends by 7%, marking

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Our unchanged 12-month target of $175 is 25.5x our FY 25 (Jun.) EPS view of $6.87 (down $0.16; FY 24 EPS up $0.07 to $6.55), a premium to the five-year forward P/E average of 24x. FQ3 EPS of $1.52 (+10.6% Y/Y) beat by $0.11 on revenue of $20.2B (+1% Y/Y), $240M below consensus. Organic growth of 3% decelerated from FQ2’s 4% and is attributable to pricing initiatives. Volumes were flat and improved from FQ2’s -1%. Fabric & Home Care and Baby, Feminine, & Family care organic growth decelerated from FQ2 levels. A 300-bp gross margin advance to 51.2% was offset by a 210-bp SG&A advance, yielding a 90-bp EBIT margin advance to 22.1%. Reflecting performance, PG guides to EPS growth of 1%-2%, attributable to lower FX headwinds

Procter & Gamble’s F3Q sales took a hit from certain international markets. CFO Andre Schulten on an investor call says volume trends of the European enterprise and Asia-Pacific/Middle East/Africa countries such as Egypt, Saudi Arabia, Turkey, Indonesia and Malaysia have remained soft since the start of heightened tensions in the Middle East. Shipments in Russia also continued to decline given its reduced footprint and curtailed investments with consumers and retailers, he adds. Schulten says the combined headwinds from greater China and Asia/Middle East/Africa markets had a 150 basis point impact on total sales in the quarter, but adds that the company expects headwinds to moderate or annualize over the coming periods.