Procter & Gamble Earnings Beat Estimates
"Our first quarter was a good start to the fiscal year. We maintained our top-line momentum and delivered profitable market share growth," said Chairman, President and CEO Bob McDonald.
The consumer products giant reported net earnings from continuing operations of $3.08 billion, compared to $3.03 billion in the same quarter last year. Net earnings per share from continuing operations grew 5% to $1.02 per share from 97 cents per share, beating analysts' estimates of $1.00 per share.
But lower prices reduced net sales by 1%, while geographic and product mix reduced net sales by 2%. Unfavorable foreign exchange negatively impacted net sales growth by 3%. Operating margin declined 10 basis points for the first fiscal quarter.
Looking ahead, the company expects net sales to increase 3% to 5% in fiscal 2011, with organic sales growing 4% to 6%. Net earnings per share from continuing operations are expected to be in the range of $3.91 to $4.01, up 11% to 14%.
For the second fiscal quarter, P&G expects net sales growth of 2% to 4%, with organic sales growth of 3% to 5%, reflecting continued, strong volume momentum, partially offset by mix and pricing. Net earnings per share from continuing operations are expected to be in the range of $1.05 to $1.11. Analysts are expecting earnings of $1.11 per share on $21.27 billion in revenues.