Proctor & Gamble (PG) reported earnings of $0.83 per share, which was slightly higher than analyst estimates at $0.82, but missed analyst estimates for revenue growth. On a core-EPS basis, the company says it has achieved the high-end of its own guidance. Investors don’t seem impressed, with the stock down 2.6% right now.
International Paper (IP) didn’t even report earnings… it reported a surprise loss thanks to ‘one-time’ charges. On an adjusted basis excluding restructuring and one-off expenses it just met analyst expectations of $0.04 per share.
International Paper is actually up a strong 5-6% right now. Investors clearly liked the result and took no issue with the company’s one-off charges. IP will have a 10am Eastern conference call and their earnings release is here. So far the jump seems a matter of low expectations going into the release, but perhaps you may be able to find the gem of hope.
Maybe it was due to the fact that the company signals an end to input cost inflation, that’s the best we can come up with right now.
“We started the quarter with an extreme run up in fibre costs in North America but ended with costs peaking in March and now moderating,” said John Faraci, chairman and chief executive officer. “The strong results of our European businesses helped offset higher input costs in North America. Importantly, we exited the quarter in North America seeing improved cost and fibre availability, stronger operations, improving demand and the further realisation of our previously announced price increases – setting us up for a significantly better second quarter.”
Also note the company increased its dividend earlier this week, but that should have been already known. We’d be interested to know what the bulls are particularly liking here.
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