The Procter & Gamble Company (NYSE:PG) released the results from its third fiscal quarter early this morning, edging out earnings estimates but missing on revenue. The company reported core earnings of $1.04 per share—a 5% increase—on revenue of $20.6 billion, which is flat year over year. That’s compared to analyst estimates of $1.02 per share in earnings and $20.68 billion in revenue.
Diluted net earnings were 90 cents per share, a 2% increase. The Procter & Gamble Company (NYSE:PG) reported 3% organic sales growth for the quarter.
Breaking down Procter & Gamble’s results
The Procter & Gamble Company (NYSE:PG) reported a 2% increase in organic sales due to innovation in Hair Care, Deodorants, and Personal Cleansing and market growth, The company said a decline in its Asian Salon Professional and Skin Care business partially offset. In Grooming, Procter said organic sales rose 1% because of higher pricing and new products in Blades and Razors and Appliances. Geographic and product mix, as well as market contraction in some regions, partially offset that gain.
In Health Care, The Procter & Gamble Company (NYSE:PG) reported flat organic sales. Declines in Personal Health Care offset growth in Oral Care, as there were fewer incidences of cold and flu. Pet Care also declined, mostly due to product recalls last year.
In Fabric Care and Home Care, The Procter & Gamble Company (NYSE:PG) reported 6% organic sales growth, recording growth in each of its businesses. The company cited innovation, market growth and expansion. The company also reported 2% organic growth in its Baby, Feminine and Family Care segment. Baby Care sales rose due to innovation and market growth, while Family Care declined because of “competitive promotional activity.”
Procter & Gamble guides for 2014
The Procter & Gamble Company (NYSE:PG) also provided guidance for the rest of this year. The company still expects 3% to 4% growth in organic sales. It projects all-in sales growth of about 1%, including negative impacts from foreign exchange, which it believes will be between 2% and 3%. Procter & Gamble projects a 3% to 5% growth in core earnings per share for the full fiscal year. The company believes reported earnings per share will grow by between 1% and 4%.
Earlier this month, The Procter & Gamble Company (NYSE:PG) announced that Mars Inc. would buy a large chunk of its Pet Care business. The companies believe that transaction will close in the second half of the 2014 calendar year. It is subject to approval from regulators. Procter & Gamble plans to sell the rest of the business in a separate transaction. Starting with the next earnings report, the company will list Pet Care under discontinued operations.