Proctor & Gamble the U.S. based consumer products maker posted quarterly revenue and earnings that beat expectation on Wall Street Tuesday helped by the company’s investments it is making in developing new products and its increase in advertising.
P&G posted earnings for the quarter of 79 cents per share with revenue coming in at over $16.1 billion.
Analysts were expecting P&G to post earnings of 74 cents per share with revenue of just over $15.82 billion.
During the fourth quarter more progress was made which drove the results of P&G to strong growth in its top line, bottom line as well as generation of new cash, said Chief Executive Officer David Taylor in a prepared statement released with the quarterly results.
The statement added that the company had grown in organic sales and volume in each of its different reporting segments and it increased its investments in advertising as well as innovations, funded by a solid improvement in its overall productivity.
These results posted on Tuesday, are the first results for a year under CEO Taylor who took over on November 1 for A.G. Lafley and on July 1 was also named as the company’s chairman.
The company is projecting that its organic sales will expand by 2% for its 2017 fiscal year, but will face strong headwinds from brand divestitures and foreign currency exchange.
On average, Wall Street was expecting revenue at P&G to expand by 1% for 2017 versus the 2016 fiscal year.
Looking ahead, the company is committed to continued improved in productivity as well as cost savings that will provide enough fuel for the investments and innovation needed to first acceleration then sustain faster growth on the top line, said Taylor.
He added that P&G expects fiscal 2017 to be another significant move forward toward its goal of a balanced growth with value creation and total shareholder return within the top third of its peer group.
P&G shares have increased close to 13% since the same time one year ago. That has outpaced the Dow Jones, which is higher by only 4% during the same period. Prior to the opening bell, P&G shares were mostly unchanged.
Competition has grown in the sector both domestically and internationally, which has caused P&G to streamline its product lines over the past two to three years and stick with those products that are most profitable.