Procter & Gamble on Wednesday reported quarterly earnings and revenue that topped Wall Street’s expectations as price hikes helped offset higher commodity and freight costs.
On the heels of its strong performance, the company also raised its outlook for sales growth but said it expects inflation to weigh even more heavily on its fiscal 2022 results.
Shares of P&G rose 1.3% in premarket trading.
Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.66 vs. $1.65 expected
- Revenue: $20.95 billion vs. $20.34 billion expected
The consumer giant reported fiscal second-quarter net income of $4.22 billion, or $1.66 per share, up from $3.85 billion, or $1.47 per share, a year earlier. Analysts surveyed by Refinitiv were expecting $1.65 per share.
Net sales rose 6% to $20.95 billion, topping expectations of $20.34 billion. Organic revenue, which strips out the impact of foreign currency, acquisitions and divestitures, also rose 6% in the quarter. About half of that growth came from the impact of price hikes on certain products in its portfolio.
For fiscal 2022, P&G is now calling for 3% to 4% sales growth, up from its prior forecast of 2% to 4%.