Cost Pressures Push P&G to Low-End of Earnings Guidance, Citing 25-Cent Impact
Summary
Procter & Gamble announced it expects to achieve the low end of its previously issued full-year adjusted EPS guidance. This clarification follows the company's earlier release of a full-year adjusted EPS range of $6.83 to $7.09. The company attributed this revised expectation to significant cost pressures, including a $150 million charge from higher commodity costs and a $400 million tariff bill, along with headwinds from higher net interest expense and foreign exchange, collectively impacting earnings by 25 cents per share. This indicates a more challenging profit environment than initially suggested by the broader guidance range, despite reporting better-than-expected Q3 profit and sales. Traders will be closely watching for any signs of these cost pressures abating in future reports.
At the time of this announcement, PG was trading at $149.81 on NYSE in the Trade & Services sector, with a market capitalization of approximately $338.6B. The 52-week trading range was $137.62 to $170.99. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.