Procter & Gamble pops on raised profit guidance
Procter & Gamble's (NYSE:PG) second-quarter results revealed mixed performance, with organic revenue growth at 4%, slightly below the average analyst estimate of 4.6%.
However, the company reported strong core earnings per share (EPS) at $1.84, compared to $1.59 in the previous year and easily beating the estimated $1.70.
Net sales reached $21.44 billion, reflecting a 3.2% increase year-over-year, slightly below the estimated $21.57 billion.
The top-line underperformance was fueled by weakness in the Beauty and Health Care sectors. Beauty organic sales grew by 1%, while the Street was looking for 3.8%. Similarly, Health Care organic sales showed an increase of only 2%, vs. the estimated 5.1%.
Notably, the gross margin exceeded expectations at 52.7%, surpassing the estimated 50.3%.
“We delivered strong results in the second quarter, enabling us to raise our core EPS growth guidance and maintain our top-line outlook for the fiscal year,” said Jon Moeller, Chairman of the Board, President and Chief Executive Officer.
“We remain committed to our integrated strategy of a focused product portfolio of daily use categories where performance drives brand choice, superiority — across product performance, packaging, brand communication, retail execution and consumer and customer value — productivity, constructive disruption and an agile and accountable organization.”
For the full year, Procter & Gamble revised its expectations for core earnings per share growth to +8% to +9%, up from the previous range of +6% to +9%.
The company now anticipates core EPS in the range of $6.37 to $6.43, in line with the consensus of $6.41.
P&G maintained its outlook for organic revenue growth at +4% to +5%, aligning with the earlier
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