Street Calls of the Week
Investing.com - Procter & Gamble has posted fiscal first-quarter net sales and core earnings per share that beat Bloomberg consensus estimates, as the consumer goods giant was buoyed by resilient consumer demand despite a murky operating environment.
The company behind brands like Head & Shoulders shampoo and Crest toothpaste also said that it now expects to incur costs from sweeping U.S. tariffs of approximately $400 million after tax during its 2026 fiscal year, down from roughly $800 million flagged in July.
U.S. President Donald Trump has made increasing tariffs a central policy goal during his administration, although the uncertainty they have caused has sparked worries that consumers may choose to rein in expenditures. In recent days, investors have been keeping close tabs on renewed trade tensions between the U.S. and China -- the world’s two largest economies -- as well as Trump’s announcement that he has terminated trade talks with Canada. Ottawa has yet to provide an immediate comment, according to Reuters.
P&G previously said it has lifted prices in order to offset the impact of the levies. However, the increases have yet to lead to a discernible downturn in volumes, which remained flat in the July to September period.
Organic sales at its beauty segment rose by 6% versus a year earlier, thanks in part to volume growth and strong pricing in North America in personal care products. This was further bolstered by more modest gains in hair and skin care.
On a net basis, sales grew by 3% to $22.4 billion, compared to Bloomberg estimates of $22.19 billion. Core per-share income, meanwhile, ticked up by 3% to $1.99, exceeding projections of $1.88.
“These results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year in a challenging consumer and geopolitical environment," said CEO Jon Moeller in a statement. "We are increasing investment in innovation and demand creation to improve value for consumers and drive category growth.”
Shares in P&G were higher in premarket U.S. trading on Friday.