Procter & Gamble’s Earnings Beat Estimates, Sees Better Organic Sales In ’17

From Procter & Gamble Co (NYSE:PG) early Friday posted better than expected fiscal second quarter earnings results, helped mainly by rising sales volumes of its signature products.

The Cincinnati-based packaged goods giant reported fiscal Q2 EPS of $1.08, which was $0.02 better than the Wall Street consensus estimate of $1.06. Revenues fell 0.3% from last year to $16.86 billion, but still topped analysts’ view for $16.77 billion.

P&G noted that organic sales increased 2% from the year-ago period, helped by a matching increase in organic shipment volume. Pricing and product mix did not have any impact on sales in fiscal Q2. All five business segments saw organic sales gains in the latest quarter, with Beauty organic sales up 3%, Grooming +1%, Health Care +7%, Fabric & Home Care +1%, and Baby, Feminine & Family Care +1%.

Looking ahead, Procter & Gamble reaffirmed its previously announced full-year 2017 EPS guidance. It still expects “mid single digit” adjusted EPS growth, which is in-line with Wall Street’s current $3.85 estimate. P&G also expects revenues to be in-line with last year’s $67.17 billion, which would top analysts’ view for sales of $65.17 billion.

Finally, P&G boosted its organic sales growth guidance from the two percent level to a range of two to three percent for fiscal 2017.

The company commented via press release:

“We delivered good results in the second quarter in a difficult operating environment,” said Chairman, President and Chief Executive Officer David Taylor. “Stronger top-line performance in the first half of the fiscal year is enabling us to increase our organic sales growth outlook for the full year – another step towards the levels of balanced top-line, bottom-line, and cash flow growth that will consistently put P&G shareholder value creation among the best in our industry.”

Procter & Gamble Co shares fell $0.65 (-0.77%) in premarket trading Friday. Year-to-date, PG has gained 0.74%, versus a 1.06% rise in the benchmark S&P 500 index during the same period.

PG currently has a POWR Rating of A (Strong Buy), and is ranked #1 of 16 stocks in the Consumer Goods category.

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