Investing.com - Procter & Gamble (NYSE:PG) reported a stellar first quarter to its fiscal 2021 year on the back of strong organic sales growth, as the coronavirus pandemic continued to stoke demand for its cleaning products, allowing the company to lift its full-year guidance.
Procter & Gamble announced earnings per share of $1.63, an increase of 20% versus the prior year, on revenue of $19.32 billion, an increase of 9%.
The company's stock rose 2% pre-market, also up over 13% from the beginning of the year.
“We delivered another strong quarter of organic sales growth, core earnings per share and cash returned to shareowners, enabling us to increase our outlook for fiscal year results,” said David Taylor, Chairman, President and Chief Executive Officer.
P&G raised its outlook for fiscal 2021 all-in sales growth from a range of 1%-3% to a range of 3%-4%ersus the prior fiscal year. It raised also its outlook for organic sales growth from a range of 2%-4% to a range of 4%-5%.
P&G expects to pay approximately $8 billion in dividends in fiscal 2021. The Company increased its outlook for common stock repurchase from a range of $6-$8 billion to a range of $7-$9 billion for the year. All told, P&G now plans to return $15 billion to $17 billion of cash to shareholders in this fiscal year.
"P&G has had a great run this year as it benefits from robust at-home consumption of cleaning products, but that blistering organic growth could slow down in the fourth quarter as the pandemic-driven buying tapers off," said Haris Anwar, an analyst at Investing.com.
"But that doesn’t mean P&G has run out of steam. In the post pandemic economy the company’s grooming unit and beauty lines should benefit and recover from the ongoing slump. P&G’s diversified portfolio and its defensive nature will keep its stock well-supported this year and beyond."
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