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Procter & Gamble Stock Edged Higher on Upbeat Q1 FY23 Results

Simon Mugo trader
Updated 19 Oct 2022

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Key points:

  • Procter & Gamble shares edged 2% higher on upbeat Q3 earnings results.
  • The firm’s revenues and EPS beat analysts’ expectations, but others failed.
  • Nevertheless, it remains hopeful about its full-year results despite headwinds.

The Procter & Gamble Co (NYSE: PG) stock price increased after the company’s revenues beat analysts’ expectations by coming in at $20.61 billion versus consensus estimates of $20.34 billion. In addition, the company’s earnings per share in Q3 were $1.57, slightly higher than the average estimate of $1.55.

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The company attributed its higher revenues to the higher prices of its products. Still, it warned that the higher prices had reduced the demand for its products among consumers leading to a decline in the volume of products sold over the past two quarters.

Also read: How To Build A Stock Portfolio.

P&G’s Chairman, President and CEO, Jon Moeller, expressed confidence about the company’s future performance, saying that while the company was operating in a challenging cost and operating environment, there was no reason to reduce its investments.

The consumer goods corporation CEO noted that the firm remains committed to its integrated strategies focused on the superiority of its product portfolio, its agile and accountable organisation structure and its constructive disruption.

Moeller reiterated that the above was the right strategy to navigate the firm’s current challenges and continue delivering balanced growth in all its product segments and creating value for its shareholders and customers.

The results announced today by P&G marked the end of the first quarter of its 2023 financial year, with the corporation reaffirming that it sees its full-year EPS at $5.88, which is the lower end of its initial range. The company also revealed that it expects an unfavourable exchange rate drag on its sales revenues of 6%, with overall sales falling from 1%-3%.

Procter & Gamble also noted that the foreign exchange rate fluctuations would cost it $1.3 billion after taxes, with the firm losing $2.4 billion from higher material and commodity costs, which would lower its after-tax profits by $3.9 billion ($1.57 per share). However, P&G still expects its full-year EPS to grow by 1%-4%.

*This is not investment advice.

Procter & Gamble stock price.

Procter & Gamble stock price 19-10-2022
Source: Tradingview

The Procter & Gamble stock price rose 2.05% to trade at $131.00, rising from Tuesday’s closing price of $128.37.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading