Procter & Gamble (NYSE:PG) shares are pushing higher in pre-market trading after reporting earnings beyond expectations set for the consumer products leader.
The Cincinnati-headquartered manufacturer of hygiene, healthcare, and household products reported $1.33 in earnings per share, beating analyst estimates by $0.04 while notching $19.4 billion in revenue, $710 million above the bar set by Wall Street.
Additionally, the company raised its guidance for the full year as price increases effectively staved off inflationary headwinds.
“We delivered another quarter with strong sales growth and made sequential earnings growth progress despite significant and increasing cost headwinds,” P&G President and CEO Jon Moeller said in a statement. “These results enable us to raise our top-line growth outlook for the fiscal year and to maintain our EPS guidance range.”
The company now expects all-in and organic sales growth to fall within a higher range, 100 basis points above previous forecasts.
Still, inflation and supply chain issues are impacting forecasts even amid price increases.
The company still forecasts headwinds of $2.5 billion ahead due to higher commodity costs, $400 million from higher freight costs, and $300 million from negative foreign exchange impacts. As a result, despite maintaining its core EPS guidance of 3-6%, it now expects to be at the low end of that range.
The stock gained 1.5% in pre-market hours.