Procter & Gamble's First Quarter Earnings Report

By Investopedia Staff | October 25, 2012 AAA

Procter & Gamble (NYSE:PG) announced its results for the most recent quarter on October 25, 2012. Procter & Gamble sells and markets consumer products such as pharmaceuticals, cleaning supplies, personal care, and pet supplies in more than 180 countries.

In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Earnings: Quality Means Everything

The Numbers: Procter & Gamble's EPS fell in line with analyst expectations of 96 cents per share while revenue of $20.74 billion beat estimates of $20.3 billion. Revenue fell 3.7% from the same period last year while EPS is down 5%. The company's net income for the quarter was $2.85 billion. According to the reported number, this is down 4.9% from last year's figures.

Management Quote: "Our first quarter results put us on track to deliver our commitments for the fiscal year. Results were at the high end of expectations on the top line and ahead of plan on operating profit, earnings per share and cash," said Chairman, President and Chief Executive Officer, Bob McDonald. "We are continuing to focus on executing our growth and productivity strategy - maintaining momentum in developing markets, strengthening our core developed market business, building a strong innovation pipeline, and aggressively driving cost savings and productivity improvements. We're confident that this strategy will enable P&G to generate superior levels of shareholder return in both short-and long-term."

Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the second quarter has moved up from $1.08 a share to $1.10 over the last 90 days. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. For the fiscal year, the average estimate has moved up from $3.90 a share to $3.91 over the last thirty days.

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