Procter & Gamble Non-GAAP EPS of $1.93 beats by $0.03, revenue of $21.74B misses by $240M
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- Procter & Gamble press release (NYSE:PG): Q1 Non-GAAP EPS of $1.93 beats by $0.03.
- Revenue of $21.74B (-0.6% Y/Y) misses by $240M.
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P&G maintained its fiscal 2025 diluted net earnings per share growth to be in the range of 10% to 12% versus fiscal 2024 diluted net EPS of $6.02. P&G also maintained its fiscal 2025 core earnings per share growth to be in the range of five to seven percent versus fiscal 2024 core EPS of $6.59. This outlook equates to a range of $6.91 to $7.05 per share vs $6.95 consensus, with a mid-point estimate of $6.98, or an increase of 6%.
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P&G now expects a commodity cost headwind of approximately $200 million after tax for fiscal 2025, which equates to a headwind of $0.08 per share. Foreign exchange is now expected to be neutral.
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In addition, the prior fiscal year included benefits from minor brand divestitures and favorable tax impacts that are unlikely to repeat to the same extent in fiscal year 2025. Combined, these are an additional $0.10 to $0.12 headwind to core EPS.
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P&G continues to expect a core effective tax rate to be in the range of 20% to 21% in fiscal 2025.
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Capital spending is estimated to be in the range of four to five percent of fiscal 2025 net sales.
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P&G continues to expect adjusted free cash flow productivity of 90% and expects to pay around $10 billion in dividends and to repurchase $6 to $7 billion of common shares in fiscal 2025.