Friday's Market Minute: Can Toilet Paper Save Procter & Gamble?

The Procter & Gamble Company PG shares fell in premarket trading immediately following the health care giant’s third quarter earnings report. PG posted adjusted earnings per share of $1.17 on revenue of $17.21B. Profits beat Wall Street estimates of $1.13, while revenue missed the mark – the Street wanted to see $17.46 billion out of PG.

However, despite missing analyst estimates, PG’s quarterly sales in the U.S. still increased by five percent compared to the previous year, thanks in part to the popularity of household staples brands like Charmin toilet paper. For its fiscal year, PG lowered its sales growth guidance to between 3%-4%, down from 4%-5%, which, the company said reflects stronger headwinds from foreign exchange. In February, Procter & Gamble was among many other companies to cut guidance or warn of lower figures for the coming quarter as cases of COVID-19 continued to spread worldwide: PG warned its profits and revenue would be affected as the virus disrupted its supply chain and initially created weaker demand for its products in China.

Going into Friday’s trading session, shares of PG are down only about 2.5% YTD, while the S&P 500 index (SPX) and Dow Jones Industrial Average ($DJI) have lost about 13% and 17% respectively in that time.