Procter & Gamble reported quarterly earnings and revenue that beat analysts’ expectations on Tuesday.
“We accelerated organic sales growth and delivered strong productivity cost savings and cash flow,” said David Taylor, P&G’s Chairman and CEO.
Here’s how P&G did compared with what Wall Street expected:
- EPS: $1.19 vs. $1.14 expected according to Thomson Reuters
- Revenue: $17.40 billion vs. $17.39 billion expected according to Thomson Reuters
Total net sales for the quarter were $17.4 billion, a 3 percent increase over the year prior. The maker of Tide and Bounty saw its strongest sales growth in beauty, which jumped 9 percent and health care, which jumped 4 percent. Within health care, its oral care sales growth clocked in at the low single digits and its personal health care jumped high single digits. The Vicks-owner said the latter was in driven in part by an early and intense cold season.
Its grooming business, which includes Gillette shaving, continued its decline, dropping 3 percent. P&G said its shave care business dropped mid-single digits, which it blamed on promotional pricing.
P&G said the recently U.S. tax law resulted in a net benefit of roughly $135 million in the latest period. It expects that net benefit to continue for fiscal 2018, and increase in the future.
It also took a provisional net charge of $628 million for the quarter, due to the new tax law.
Core earnings per share, which excludes certain items like temporary impact of the tax law, were $1.19, an increase of 10 percent versus the prior year. P&G attributed this increase to is jump in net sales and a lower core effective tax rate.