Procter & Gamble surpassed Wall Street estimates on earnings but fell short on sales. The sales miss is likely to give activist investor Nelson Peltz ammunition in his continuing battle against P&G for struggling to defend market-share.
The consumer products giant reported revenue of $16.7 billion compared $16.69 billion expected, according to Thomson Reuters. That marks a one percent growth from the year prior.
The company tempered lagging sales with improving margins, reporting adjusted EPS of $1.09 cents vs. $1.08 cents expected, according to Thomson Reuters Reuters analysts.
P&G has been aggressively cutting costs as part of its plan to reinvigorate growth.
Here’s what P&G reported compared to what Wall Street expected:
- EPS: Adjusted $1.09 cents vs. $1.08 cents expected, according to Thomson Reuters
- Revenue: $16.7 billion vs. $16.7 billion expected, according to Thomson Reuters
The consumer products good giant is coming off the biggest ever proxy fight, in which it beat Nelson Peltz’s bid to get on the board by a razor-thin margin. Peltz has said regardless of whether he gets a seat, he will continue to pressure from the sidelines.
Peltz’s Trian Fund Management owns roughly $3.3 billion worth of P&G shares.
Peltz’s presence, along with an investor base that voted heavily against company management, will keep the pressure on P&G to perform. Among Peltz’s critiques of the company are losses of market share, lack of innovation, and slowed sales.
P&G said that its results met expectations and the company is on track to deliver targets for the fiscal year.
“We delivered organic sales growth in a decelerating global market and against a relatively strong base period,” said David Taylor, Chairman and CEO of P&G.
“Looking forward, we will drive innovation, productivity and organization transformation to accelerate top-line growth while further expanding our industry-leading profit margins.”