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Procter & Gamble Q1 Profit Up 12%; Results Beat View

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Consumer goods giant Procter & Gamble Co. (PG) on Tuesday reported a 12 percent increase in profit for the first quarter of fiscal 2020 from last year, driven by an increase in net sales and operating margin.

Both revenue and core earnings per share for the quarter beat analysts' estimates. Looking ahead, the company raised its earnings and revenue growth guidance for the full-year 2020. Shares of the company are gaining more than 4 percent in pre-market activity.

"We delivered strong top-line growth, profit margin expansion and cash productivity in the first quarter, enabling us to increase our outlook for fiscal year results," said David Taylor, Chairman, President and Chief Executive Officer.

Net earnings attributable to P&G for the second quarter rose to $3.59 billion or $1.36 per share from $3.20 billion or $1.22 per share in the prior-year quarter.

Core earnings per share for the quarter were $1.37, compared to $1.12 per share last year. On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $1.24 per share for the quarter. Analysts' estimates typically exclude special items.

Currency-neutral core earnings per share increased 24 percent for the quarter.

Net sales for the quarter rose 7 percent to $17.80 billion from $16.70 billion in the same quarter last year. Analysts had a consensus revenue estimate of $17.42 billion.

Excluding the net impacts of foreign exchange, acquisitions and divestitures, organic sales also increased 7 percent.

Looking ahead to fiscal 2020, the company raised its guidance for core earnings per share growth to a range of 5 to 10 percent from a range of 4 to 9 percent.

The company also raised its outlook for all-in sales growth to a range of 3 to 5 percent from a range of 3 to 4 percent. It increased guidance for organic sales growth to a range of 3 to 5 percent from a range of 3 to 4 percent.

The Street expects the company to report earnings of $4.84 per share on revenue growth of 3.4 percent to $69.97 billion for the year.

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