Urlati Plant Manager, Luc Viaene (L), Romanian President Traian Basescu (C) and Bob MacDonald (R), President and Chief Executive Officer of P&G, stand together during the official inauguration of a new Procter & Gamble plant in Urlati, a city 80km northeast from Bucharest, on September 29, 2010. The new factory will produce hair care products, of which 90 percent will be exported throughout the European Union and Turkey. DANIEL MIHAILESCU/AFP via Getty Images
Procter & Gamble (P&G) reported earnings that exceeded Wall Street's expectations for the latest quarter, but its revenue figures disappointed analysts.
As shared by CNBC, the company revealed earnings of $1.40 per share, adjusted for various factors, surpassing the anticipated $1.37 per share. Despite this positive earnings report, P&G's revenue for the quarter was $20.53 billion, falling short of the $20.74 billion forecasted by analysts.
Meanwhile, this quarter is an import milestone for P&G, as it saw a 1% increase in volume, the first growth in more than two years. Volume, which excludes the effects of pricing changes, is a more precise indicator of actual consumer demand.
The uptick in volume was driven by stronger demand in its grooming, health care, and fabric and home-care products, all of which experienced a 2% increase in volume.
However, the company's beauty and baby, feminine, and family care segments faced continued challenges. Both of these divisions experienced a 1% drop in volume, largely due to decreased demand for its high-end SK-II skincare products and diapers.
These issues contributed to P&G's overall revenue not meeting expectations, leading to a 4.6% drop in its stock price during premarket trading, according to MarketWatch.
Looking ahead, P&G has projected core net earnings per share to be between $6.91 and $7.05 for fiscal 2025. The company also maintained its revenue growth outlook of 2% to 4%, with CEO Jon Moeller expressing confidence in the company's strong position heading into the next fiscal year.
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