Containers of Tide laundry detergent on the shelves of the New York grocery store.
Richard B. Levine | Corbis | Getty Images
Procter & Gamble topped analyst estimates for quarterly earnings and revenues on Tuesday as consumers held on to pandemic buying trends such as buying more cleaning products and resuming beauty products.
The company, which includes Tide laundry detergent, Charmin toilet paper, and Pampers diapers, among others, also announced it will be making price increases on some products this fall.
The company’s stock remained flat in premarket trading.
Here’s what the company reported compared to what Wall Street expected, based on an analyst survey by Refinitiv:
- Earnings per share: $ 1.26 vs. $ 1.19 expected
- Revenue: $ 18.1 billion vs. $ 17.9 billion expected
P&G reported net profit for the third quarter of $ 3.27 billion, or $ 1.26 a share, compared to $ 2.92 billion or $ 1.12 a share a year earlier. Analysts polled by Refinitiv expected earnings per share of $ 1.19.
Net sales Up 5% to $ 18.1 billion, exceeding expectations of $ 17.9 billion. Organic sales grew 4% in the quarter.
The company reiterated its outlook for the fiscal year 2021, predicting revenue growth of 5% to 6% and adjusted earnings growth of 8% to 10%.
P&G has begun to drive price increases for its baby care, feminine care and adult incontinence products in the United States to offset rising raw material costs. Price increases will vary by brand, but will be in the mid to high single digit range. Consumers can expect the price increases to take effect in September. Rival Kimberly-Clark, who makes Huggies, has already announced price hikes for some of its products.
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