EmailProcter & Gamble (PG $60.39 -1.81) issued downside guidance for the fourth quarter with EPS of $0.75-0.79 versus the $0.82 Capital IQ consensus and down from $0.79-0.85 prior. All-in diluted net earnings per share, which includes a gain of $0.47-0.50 on the sale of the Snacks business, are expected to be in the range of $1.17-1.26 per share, compared to a prior range of $1.21-1.32. Versus prior guidance, the revisions to the co's fourth quarter outlook are primarily driven by slower than anticipated top-line growth from slower than expected market growth rates and market share softness in developed regions and negative impacts from foreign exchange rate changes. Organic sales growth is now expected to be in the range of two to three percent, compared to a prior range of four to 5%. Foreign exchange is now expected to reduce net sales by 4%.
Net sales are expected to be in the range of down two to down one percent compared to a prior range of an increase of one to two percent. Additionally, co issues preliminary Fiscal Year 2013 guidance. Organic sales are expected to increase in the range of 2-4%. Core earnings per share are expected to be in-line to up mid-single digits percentage versus fiscal 2012 results. Current consensus calls for FY13 EPS growth of ~7% over FY12 ests, as reported. Co noted that foreign exchange, based on early-June spot rates, will negatively impact fiscal 2013 EPS growth by ~4 percentage points. Excluding foreign exchange impacts, co's core earnings per share outlook equates to approx mid-to-high single digit growth.
