Procter & Gamble (PG) continues to have “strong earnings power,” driven by its innovation and favorable cost trends, BofA Securities said in a Friday note.
The company reported fiscal Q3 core earnings per share of $1.52 per diluted share, up from $1.37 a year earlier, and net sales of $20.20 billion, increasing from $20.07. Procter & Gamble also raised its full-year core EPS outlook, while maintaining its sales growth guidance.
BofA Securities said the company’s 3% organic sales growth in fiscal Q3 included a negative impact from the expected weak cold and flu season but was still supported by its business segments’ “better-than-modeled” performance during the period.
“We see little risk to PG delivering FY guide with only one quarter remaining, implying good line of sight to 4Q organic sales,” the investment firm added. BofA Securities attributed the company’s higher earnings guidance for the year to commodity cost tailwinds and lower drag from foreign exchange headwinds.
BofA Securities reiterated its buy rating on Procter & Gamble, with a price target of $175.