Shares of Procter & Gamble (NYSE:PG) fell 2.6% premarket as the consumer goods giant reported a revenue miss in its fourth quarter despite posting a slight earnings per share (EPS) beat.
The company's Q4 EPS came in at $1.40, $0.03 above the analyst estimate of $1.37. However, revenue for the quarter was $20.53 billion, falling short of the consensus estimate of $20.73 billion.
P&G's fourth-quarter net sales remained flat compared to the prior year, while organic sales rose 2%. This growth was supported by a 1% increase in all-in volume and a 1% rise from higher pricing, which were offset by a 2% negative impact from foreign exchange.
Commenting on the result, Chairman, President, and CEO Jon Moeller highlighted the company's ability to meet or exceed plans for organic sales growth, core EPS growth, cash generation, and cash return to shareholders in a challenging economic and geopolitical environment.
Looking ahead to fiscal 2025, P&G provided guidance for all-in sales growth in the range of 2% to 4% versus the prior year, with organic sales expected to grow between 3% to 5%.
The company anticipates diluted net earnings per share growth of 10% to 12%. The guidance suggests a range of $6.91 to $7.05 per share, with a mid-point estimate of $6.98, representing a 6% increase, above the analyst consensus of $6.96.
The company also warned of a net headwind of around $500 million after-tax from unfavorable commodity costs and foreign exchange, equating to a $0.20 per share impact for fiscal 2025.