Procter & Gamble Q3 Profit Rises 7%; Adjusted Net Tops Views, Revenue Misses (PG)

Consumer goods maker The Procter & Gamble Company (PG) reported early on Wednesday a rise in its third quarter profits on higher sales. Adjusted net earnings topped estimates, but revenue missed views.

The Cincinnati, Ohio-based company posted third quarter net income of $2.57 billion, or 88 cents per share, from $2.41 billion, or 82 cents per share, earned in the same quarter a year ago.

Adjusting for certain charges, which total 11 cents per share, the company earned 99 cents per share in the third quarter. This topped Wall Street estimates, as analysts were expecting the company to earn 96 cents per share in the quarter.

Procter & Gamble’s net sales for the third quarter rose to $20.6 billion, up 2% from $20.19 billion last year. However, this missed analysts’ estimates of $20.74 billion in revenue.

“We delivered another quarter of steady progress,” said Chairman, President, and Chief Executive Officer, Bob McDonald. “Top-line growth was in line with our expectations. Market shares improved broadly. Strong cost savings enabled us to exceed our outlook on the bottom line. We increased our dividend earlier this month, and we are now projecting to repurchase $6 billion in stock, which is at the high end of our estimated range. We expect further top-line improvement in the fourth quarter, driven by innovation and portfolio expansion, enabled by continued productivity improvement.”

Looking ahead to the fourth quarter, Procter & Gamble expects core earnings to be between 69 cents and 77 cents per share, with adjusted earnings per share between 67 cents and 75 cents. Analysts are expecting the company to post fourth quarter earnings of 81 cents per share.

For fiscal 2013, P&G is raising the low end of its previous guidance range; the company expects earnings to be between $3.96 and $4.04 per share, up from the previous range of $3.94 to $4.04 per share. Analysts expect fiscal 2013 earnings of $4.05 per share.

P&G shares were down $2.75, or -3.33%, during pre-market trading on Wednesday. The stock is up +18.95% year-to-date.

The Bottom Line
Shares of Procter & Gamble (PG) have a dividend yield of 2.92% based on last night’s closing price of $82.54 and the company’s annualized dividend payout of $2.41 per share.

The Procter & Gamble Company (PG) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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