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(Sharecast News) - Shares in Procter & Gamble cleaned up on Thursday, even after the US consumer goods giant warned of rising costs, after quarterly earnings beat Wall Street forecasts.
The owner of Bold detergent, Head & Shoulders shampoo and Pampers nappies, among many others, posted first-quarter net sales of $23.3bn, a 4% jump. Organic sales were also 4% higher, while core earnings rose 1% to $2.00 per share.
Analysts had been looking for revenues closer to $22.8bn and core EPS of $1.88. Overall volumes rose 2.4% and prices by around 0.4%.
Shailesh Jejurikar, chief executive, said: "Our solid sales, earnings and cash results in the first quarter reflect sharpened execution of our integrated strategy. While we expect there will continue to be geopolitical and economic challenges, this strong start keeps us on track to deliver within our guidance ranges for organic sales growth, core EPS growth and free cash flow productivity for the fiscal year."
Looking to the rest of the year, and the company reiterated guidance for organic sales growth in the range of 1% to 3%, and core EPS growth of in-line to 3%.
It also flagged a post-tax commodity cost headwind of around $1.4bn, on the back of higher raw materials, energy and transportation costs, a net interest expenses and unfavourable exchange rates.
But that did not stop the shares sparking, and by 1600 BST they had put on 5%.
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