Procter & Gamble Co (NYSE: PG) is up more than 4.0% in the stock market on Wednesday after the consumer products company reported market-beating quarterly results and narrowed its guidance for full-year sales.
CEO Moeller’s remarks on CNBC’s ‘Squawk Box’
On CNBC’s “Squawk Box”, CEO Jon Moeller agreed that P&G had pricing power but said higher commodity and transportation costs continue to be a headwind for 2022.
The combination of commodity costs and transportation costs are now up to a $2.60 billion headwind. That’s up incrementally versus our previous estimate. Forex has also turned from a neutral position to a headwind.
Moeller, however, is confident that strong innovation and solid consumer demand will help offset much of these headwinds.
Shares of Procter & Gamble closed 2021 with a little under 20% gain. Out of the 25 analysts that cover P&G, 13 have a “buy” rating on it at this point in time.
Key takeaways from the earnings press release
Procter & Gamble reported $4.22 billion in net income that translates to $1.66 per share. In the comparable quarter of last year, it had posted $3.85 billion in net income or $1.47 a share. Sales jumped roughly 6.0% YoY to $20.95 billion.
Organic sales noted an increase across all segments. According to FactSet, experts had forecast $1.65 of EPS on $20.34 billion in sales in the recent quarter. The earnings report comes more than a week after P&G bought Tula Skincare for an undisclosed amount.
For the full financial year, P&G forecasts up to 4.0% increase in sales on 3.0% to 6.0% growth in adjusted EPS. In comparison, experts were calling for a 3.9% growth in sales on a 4.4% increase in adjusted EPS.
The post P&G CEO on Q2 results: higher costs continue to be a headwind appeared first on Invezz.
