Procter & Gamble Co. (NYSE: PG) on Tuesday reported its fiscal third-quarter earnings that beat analysts’ estimates. The better-than-expected profit was boosted by cost cuts and higher selling price.
The Cincinnati-based company said that the third-quarter profit rose nearly 28 percent to $2.75 billion, or 97 cents a share, compared with $2.15 billion, or 75 cents a share, a year earlier. Excluding some items, earnings were 86 cents a share for the quarter ended March 31. The result is better than analysts’ estimate. Analysts polled by Thomson Reuters had projected a adjust earning of 82 cents a share.
Revenue dropped 6.9 percent to $15.8 billion in the latest quarter. The result matches analysts’ estimate. Analysts had projected the revenue to be $15.81 billion.
The better-than-expected earnings were help by cost cuts. In order to compete with other rivals, the company had been focusing on trimming expenses. The company said that an additional $10 billion cost cuts would be conducted in the next five years.
Higher selling price improved revenue, but it hurt volumes. Volumes declined across nearly all of its business. The company recorded a 5 percent volumes drop in its beauty segment, a 6% drop in its grooming segment, a 3% decline in its health care segment, and a 2% slip in its baby, feminine and family care segment.
The company also tightened its guidance for full-year core earning to a 3 to 6 percent down, compared with previous guidance of 3 to 8 percent decline.
P&G shares drop 1.67 percent to $80.05 at 11:43 a.m. in New York.