P&G 1Q results top Wall Street view as revenue climbs
CINCINNATI (AP) — Procter & Gamble, still counting shareholder votes in a recent fight with activist investor Nelson Peltz for control in its board room, edged out Wall Street expectations in its first quarter.
Revenue for the world’s biggest consumer products company were driven by rising sales of cosmetics, health care goods, and items used in the home.
For the three months ended Sept. 30, P&G earned $2.85 billion, or $1.06 per share. A year earlier it earned $2.71 billion, or 96 cents per share.
Stripping out restructuring charges, earnings were $1.09 per share, 2 cents better than industry analysts polled by Zacks Investment Research had expected.
Revenue rose slightly to $16.65 billion, from $16.52 billion, meeting expectations.
P&G on Friday maintained its fiscal 2018 forecast for its adjusted profit to be up 5 percent to 7 percent from the prior year’s $3.92 per share.
Initial voting results earlier this month indicated that P&G had successfully fended off Peltz. But the margin of victory was razor thin and Peltz has not conceded defeat.
A regulatory filing from P&G this week showed that the company’s pick for the board won by just 0.2 percent of the vote.
Peltz’s Trian Fund Management, which owns about $3.5 billion in P&G shares, invested in the Cincinnati company less than a year ago.
Trian has said that P&G has underperformed its peers for a decade. But P&G says that since David Taylor was named CEO two years ago, the company has been moving in the right direction. Shares have been rebounding sharply and the company says giving Peltz a seat would disrupt the work that Taylor is doing.
Shares of Procter & Gamble Co. declined just over 1 percent, to $90, before the opening bell.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on PG at https://www.zacks.com/ap/PG