It was another clean quarter from Tide maker Procter & Gamble (PG).
Shares of the consumer products giant rose nearly 2% in premarket trading on Wednesday amid better-than-expected fiscal first quarter results.
P&G chairman and CEO Jon Moeller characterized the quarter as "strong" in an interview with Yahoo Finance.
Despite increasing stress on consumer budgets, P&G was able to successfully push through price increases as it continues to double down on new product innovations.
The company saw organic sales growth in all product categories, led by a 10% increase in the healthcare business on the back of demand for Crest toothpaste and whiteners.
"Overall we view the result as solid and reflective of topline momentum and reinvestment positioning the company to accelerate organic volume growth," said Stifel analyst Mark Astrachan in a note to clients.
The earnings rundown
Net sales: $21.9 billion, up 6% from the prior year vs. (consensus) estimate of $21.62 billion
Organic sales growth: 7% vs. 5.83% estimate
Beauty Segment organic revenue growth: 5% vs. 6.55% estimate
Grooming Segment organic revenue growth: 9% vs. 6.88% estimate
Healthcare Segment organic revenue growth: 10% vs. 4.88% estimate
Fabric & Home Care Segment organic revenue growth: 9% vs. 6.43% estimate
Baby, Feminine & Family Care Segment organic revenue growth: 7% vs. 6.56% estimate
Operating profits: $5.76 billion vs. estimate of $5.34 billion estimate
Adjusted EPS: $1.83, up 17% from the prior year vs. estimate of $1.72
What else caught our attention: Forward guidance
P&G reiterated its fiscal year profit outlook in a range of $6.25 to $6.43 per share. The company sees an $800 million tailwind from lower commodities costs.
Fiscal first quarter gross profit margins rose 460 basis points from a year ago, in large part because of higher product prices and easing commodities costs.
Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email [email protected].
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