Procter & Gamble
expects fourth-quarter earnings growth to exceed guidance and Wall Street's consensus estimate on strong sales volume growth.
The company, which markets over 250 brands including Pampers, Tide, Pringles, and Clairol hair products, expects its core earnings per share growth, excluding restructuring charges, to be in the high teens range. Procter & Gamble said the results will exceed Wall Street's current estimate of 72 cents a share, according to Thomson Financial/First Call. In the year-ago quarter, P&G earned 63 cents a share. In April, the company had forecast growth in the low teens for the quarter.
Domestic sales are expected to see growth in the mid to high single digits, while the foreign exchange rate will hurt the company's top line by about 1% to 2%, an improvement over earlier guidance due to new strength in the yen and the euro.
The company said volume growth will increase 9% to 10%, due mainly to its recent acquisition of Clairol. P&G's also seen strong volume performances from beauty care, health care, and fabric and home care products, especially in North America.
The company's operating margin should grow by about 100 basis points from last year, in line with previous guidance.
Shares of Procter & Gamble tacked on 2.2% in premarket trading on the news, rising about $2 to $91 after closing at $89 Tuesday.