Procter & Gamble blows past Wall Street estimates in the fiscal first quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Oct 20, 2020
  • Procter & Gamble blows past Wall Street estimates in the fiscal first quarter.
  • The consumer goods company reports £3.31 billion of net income in Q1.
  • The American multinational forecasts a 3% to 4% growth in its full-year sales.

The Procter & Gamble Company (NYSE: PG) published its earnings report on Tuesday that blew past Wall Street estimates for the fiscal first quarter. The company expressed confidence that performance will remain robust in the upcoming months as it raised its guidance for fiscal 2021.  

Procter & Gamble was reported trading more than 2% up in premarket trading on Tuesday but lost the majority of its intraday gain later in the day. Shares of the company are now exchanging hands at £110.16 per share versus £95.37 at the start of 2020. Interested in investing in the stock market online? Here’s a simple guide to get you started.

P&G’s Q1 financial results versus analysts’ estimates

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Procter & Gamble reported £3.31 billion of net income in the fiscal first quarter that translates to £1.26 per share. In the same quarter last year, its net income was capped at a lower £2.77 billion or £1.05 per share. P&G had topped estimates in the prior quarter (Q4) as well despite the Coronavirus pandemic that has so far infected more than 8.4 million people in the United States and caused over 225 thousand deaths.  

Procter & Gamble said it generated £14.93 billion of sales in Q1 versus the year-ago figure of £13.76 billion. According to FactSet, experts had forecast £14.20 billion of sales in the first quarter and £1.10 of earnings per share. In an announcement last month, Procter & Gamble said it will negotiate directly with TV, Media for Ad Buys moving forward.

Health care items, Procter & Gamble added, posted an 11% sales growth in the recent quarter. Sales from its fabric and home care segment came in 14% higher on an annualised basis.

Procter & Gamble’s guidance for the full year

The consumer goods corporation now forecasts a 3% to 4% growth in its full-year sales versus an up to 3% growth previously estimated.

FactSet Consensus for annual sales, on the other hand, stands still at up to 3% growth. For adjusted per-share earnings, the American multinational forecasts a range of 5% to 8% growth, versus a 5.7% growth in adjusted EPS, as per the analysts’ estimates.

Procter & Gamble performed fairly upbeat in the stock market last year with an annual gain of more than 30%. At the time of writing, it is valued at £274.34 billion and has a price to earnings ratio of 28.74.

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