Procter & Gamble (PG, Financial) reported its fourth-quarter and full-year earnings for 2016 on Aug. 2. The Dow Jones Industrial Average consumer goods company beat estimates for both revenue and earnings for the fourth quarter.
Revenue for the fourth quarter was $16.1 billion, beating estimates by $270 million. While revenue beat estimates, sales growth weakened as the company reported comparable quarter growth of -3%. For the year revenue was $65.3 billion, down 8% from 2015.
Sales were down across all business segments for Procter & Gamble in 2016.
For the fourth quarter, Procter & Gamble reported earnings per share of 79 cents, beating analysts’ average estimate for the quarter by 5 cents. Earnings per share for the fourth quarter were down 15% from the comparable quarter. For the year earnings per share were $3.67, down 2% from 2015. For the year business segment earnings improved 21% overall. Earnings in health care improved 7%, and earnings in fabric and home care improved 5%.
Two factors were significant in the company’s lower earnings for the quarter and will likely lower the outlook for the first quarter of 2017. Foreign exchange was one factor adjusting the company’s earnings lower. The second factor impacting Procter & Gamble was its operations in Venezuela. The company is unconsolidating and divesting its Venezuela businesses. As a result sales have been lower, and business expenses have been higher.
In a CNBC report following the company’s earnings release, Jon Moeller, Procter & Gamble’s chief financial officer, gave insight into the company’s earnings results.
Disclosure: I do not own any shares of Procter & Gamble.
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