Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

P&G tumbles on earnings disappointment

By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- Procter & Gamble shares tumbled more than 3% Tuesday after the consumer products maker announced lower-than-expected earnings and sales in its fiscal fourth quarter.

The Cincinnati-based company said increased spending on marketing new products was mainly to blame for its lower profit, which slipped to $2.19 billion, or 71 cents per share, from $2.45 billion, or 80 cents per share, in the year-earlier quarter.

Analysts polled by Thomson Reuters had expected income of $2.3 billion, or 73 cents per share, in the quarter ended June 30.

Driven by new product launches, sales rose 5% to $18.93 billion. But that number still fell short of analysts' forecasts, which predicted $19.1 billion.

Over the last quarter, P&G (PG, Fortune 500) unveiled a new Gillette men's shaving razor, an Olay Regenerist facial treatment and a Gucci fragrance, and relaunched its Pantene shampoo line in North America.

"The investments we've made in innovation, marketing support and consumer value have delivered accelerating unit volume and profitable market share growth throughout the year, which are clear indications that our strategy is working," P&G CEO Bob McDonald said in a statement.

P&G fell 3.4%, or $2.12, to close at $59.94 per share. To top of page

Index Last Change % Change
Dow 18,395.40 -53.01 -0.29%
Nasdaq 5,218.92 6.71 0.13%
S&P 500 2,169.04 -3.43 -0.16%
Treasuries 1.64 0.06 3.68%
Data as of 3:44am ET
Company Price Change % Change
Bank of America Corp... 15.79 0.26 1.67%
Chesapeake Energy Co... 6.40 0.07 1.11%
Freeport-McMoRan Inc... 10.89 -0.20 -1.80%
Apple Inc 106.94 -0.63 -0.59%
Micron Technology In... 16.51 0.31 1.91%
Data as of Aug 26
Sponsors

Sections

On Friday Janet Yellen reiterated again that the government has to spend more during crises. Both Hillary Clinton and Donald Trump want to boost spending. More

Michigan could become first state to allow self-driving cars to take to the roads without a human driver ready to take control. More

Tesla started building its massive Gigafactory in June 2014. Since then, home prices in the nearby market have risen faster than the national average. More