Joe Raedle
Shares of Procter & Gamble (NYSE:PG) declined sharply in pre-market trading on Friday as the “P” and “G” in terms of profits and guidance disappointed the market.
For its fiscal fourth quarter, the company notched non-GAAP EPS of $1.21 that came up two cents short of estimates. Meanwhile, $19.52B in revenue rose above expectations by $110M. The company noted that gross margins were hit by a 450 basis point jump in commodity costs as well as an 80 basis point increase in freight costs.
While the company pursued an 8% increase in pricing across products, it was not able to entirely offset the escalating inflationary pressures on the business. The release added that reduced operations in Russia and lockdowns in China also impacted the business.
“As we look forward to fiscal 2023, we expect another year of significant headwinds,” CEO Jon Moeller said. “We remain committed to our integrated strategies of superiority, productivity, constructive disruption and an agile and accountable organization structure. They remain the right strategies to step forward into the near-term challenges we are facing and continue to deliver balanced growth and value creation.”
The company expects fiscal year 2023 all-in sales growth in the range of in-line to up two percent versus the prior fiscal year. Diluted net earnings per share growth in the range of in-line to up four percent versus fiscal 2022 EPS of $5.81. At the mid-point of the range, this outlook equates to $5.93 per share, well below the $6.01 forecast by analysts.
Shares dipped 3.72% shortly after the report.
Read more on the earnings estimates for the company moving forward.
Image and article originally from seekingalpha.com. Read the original article here.