Procter & Gamble and American Airlines released their latest earnings reports before opening bell this morning. Procter & Gamble posted earnings of 98 cents per share on revenue of $16.5 billion for its first fiscal quarter. Analysts had been expecting earnings of 95 cents per share and $17.28 billion in revenue.
American Airlines reported earnings of $2.77 per share and $10.7 billion in revenue, compared to the analyst estimates of $2.72 per share in earnings and $10.7 billion in revenue.
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Procter & Gamble’s sales dive
The most recently completed quarter marked Procter & Gamble’s largest sales decline in almost two years. Management cited the strong U.S. dollar and weak demand across all product categories as the reasons for the massive decline, both of which offset improvements in pricing and product mix. The company recorded a 7% volume decline in Beauty, a 3% decline in Grooming, a 6% decline in Health Care, a 3% decline in Fabric Care and Home Care, and a 7% decline in Baby, Feminine, and Family Care.
On a currency neutral basis, Procter & Gamble’s adjusted earnings of 98 cents increased 12% year over year. The consumer products company’s reported earnings were 91 cents per share, compared to last year’s 69 cents per share. Procter & Gamble improved its core operating profit margin 270 basis points.
Procter & Gamble warned that market volatility and changing interest rates make it hard to guide for next year, but for now, management is maintaining their previous outlook for earnings to either declining slightly or grow in the mid-single-digit percentages.
As of this writing, shares of Procter & Gamble were up 1.66% at $76.10 per share in premarket trading.
American Airlines still benefiting from lower fuel costs
American Airlines’ reported earnings were $2.49 per share, an increase from $1.28 per share last year. This was a 54% year over year increase which is the airline’s highest quarterly profit ever. Operating costs declined 11.9% due to a 43.5% reduction in fuel expenses.
The airline said total available seat miles declined 2.9% in the quarter, while consolidated passenger revenue per available seat mile fell 6.8% to $13.16 cents year over year. Passenger yield fell 9.2% to 15.37 cents.
As of this writing, shares of American Airlines were up 3.74% at $47.71 per share in premarket trades.