Gillette Parent Procter & Gamble Grows Q3 Margins Despite Flat Revenue, Raises Annual Profit Outlook
Portfolio Pulse from Shivani Kumaresan
Procter & Gamble Co (NYSE:PG) reported a slight sales growth of 1% Y/Y in Q3 FY24 to $20.195 billion, missing estimates. Organic sales grew 3%, driven by higher pricing. Adjusted EPS of $1.52 beat estimates, with gross profit up 7% and operating income rising 5%. P&G raised its FY24 EPS growth outlook and plans to return over $9 billion to shareholders through dividends and share repurchases. Shares fell 1.30% in premarket trading.
April 19, 2024 | 11:59 am
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POSITIVE IMPACT
Procter & Gamble reported modest sales growth but beat EPS estimates in Q3 FY24, raised its annual profit outlook, and plans significant shareholder returns despite premarket share price drop.
Despite missing sales estimates, P&G's higher than expected EPS and raised profit outlook signal strong operational performance and financial health. The commitment to return over $9 billion to shareholders through dividends and repurchases underscores confidence in future performance. However, the premarket share price drop suggests a short-term negative reaction, possibly due to the sales miss or broader market conditions. The long-term outlook remains positive given the company's strategic adjustments and financial commitments.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100