By Senad Karaahmetovic
Procter & Gamble (NYSE:PG) shares are up almost 2% in pre-open Wednesday trading after the company reported higher-than-expected top and bottom line numbers for its fiscal first quarter.
PG reported a Q1 EPS of $1.57, modestly better than the analyst estimate of $1.56. Revenue for the quarter came in at $20.6 billion versus the consensus estimate of $20.37 billion. Overall, sales rose 1.3%, fueled by modestly higher revenue from Healthcare, Fabric & Home Care, and Baby, Feminine & Family Care units.
On the guidance front, PG still sees organic revenue to grow 3-5% but expects EPS "towards the low end of FY guidance range [0-4%] given increased foreign exchange impacts."
"The FX headwinds were understood by investors we speak with and the debate was whether or not management would have to lower its range. As such, we believe the relatively good results and reiterated guidance will be enough to drive relative outperformance for the stock today."