Yahoo Finance P&G CFO reveals how Tide maker blew away Wall Street profit estimates
P&G (PG) continues to clean up nicely on earnings days.
The consumer products giant, which has restructured how it operates to cut costs and bring new innovations to market quicker, delivered another big quarter to investors on Tuesday. Fiscal first quarter earnings excluding one-time items clocked in at $1.37 a share, trouncing forecasts for $1.24 a share. Organic sales growth clocked in at 7%, beating Wall Street estimates for a 5% increase.
Shares popped more than 4% in pre-market trading. The stock is up roughly 38% in the past year.
P&G also offered up another upbeat outlook. The company outlined organic sales growth of 3% to 5% in the coming fiscal year compared to 3% to 4% previously. Earnings excluding one-time items are seen rising 4% to 10%, versus a prior outlook of 4% to 9%.
P&G’s Chief Financial Officer Jon Moeller tells Yahoo Finance the consumer environment in the U.S. remains healthy. That has helped P&G to drive success with new product introductions, notably within the Crest toothpaste and Tide laundry detergent brands. The company officially reorganized its business on July 1, and Moeller says less duplication among teams is leading to better product execution.
All of that showed up in P&G’s first fiscal quarter.
P&G grew organic sales in all of its business lines in the quarter, paced by a 10% gain in beauty. Product volume increased in all segments except grooming, which fell 1%, as P&G continues to feel pressure from competitive pricing by upstart razor blade companies.
Brian Sozzi is an editor-at-large and co-anchor of The First Trade at Yahoo Finance. Follow him on Twitter @BrianSozzi
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