Procter & Gamble experiences a sales plunge

Procter & Gamble experiences a sales plunge


During PREMARKET session consumer good company, Protector& Gamble Co. (NYSE) experienced a plunge within its shares by 0.4% – a day after it had laid forth its 3Q earnings.Although the financial report beats estimates but the upcoming 4Q estimates might yield ‘significant lower’ results than initial year.

INSIGHT: P&G sold its Duracell business during the Q.

The net income reported by company is worth $2.75 billion, i.e. 97 cents/share – bullish from $2.15 billion, i.e. 75 cents/share; for the same period a year ago (The Fact Set consensus was 82 cents/share).

The Q sales result depicted $15.76 billion – bearish from $16.93 billion; a year ago (just missing the FactSet consensus of $15.81 billion).

The biggest sales decline came in the grooming category, totallya 10% loss. Beauty and family care sales both declined 8%, meanwhile the health care sect experienced a drop worth 7%.

Company blames foreign exchange alongside 2% impact from Venezuela deconsolidation and 1% impact from minor brand divestitures, to be the cause of negative yield.

Removing certain items, EPS was 86 cents, excluding certain items– bullish from EPS of 82 cents earlier forecast by FactSet.

The company reported to expect a total sale on bear track from high-single digits in fiscal 2016. It also reported to have ‘congested’ it hopes for earnings’ call; a projection towards a per-share decline between 3% and 6% in comparison to $3.76 last year owing to advertising investments, a higher tax rate, headwinds from foreign exchange and lower non-operating income.

P&G has set up a voyage to repurchase as well as exchange shares worth $8 billion over annual basis.

UPDATE: The shares have gained 0.5% for the past year meanwhile the S&P 500 has lowered by 1.4%; during the same time duration.