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Procter & Gamble Q2 Profit Tops Estimates; Organic Sales Up 5%

procter&gamble july31 23jan20 lt

The Procter & Gamble Company (PG) reported that its second-quarter core earnings per share rose 14 percent year-on-year, due to lower non-core restructuring charges versus the prior year. Currency-neutral core earnings per share increased 15 percent. Organic sales were up five percent, for the quarter. For fiscal 2020, the company raised its guidance for core earnings per share growth from a range of five to ten percent to a range of eight to eleven percent. Also, the company increased its guidance for organic sales growth from a range of three to five percent to a range of four to five percent.

Second-quarter core earnings per share was $1.42 compared to $1.25, a year ago. On average, 17 analysts polled by Thomson Reuters expected the company to report profit per share of $1.37 for the quarter. Analysts' estimates typically exclude special items. Diluted net earnings per share were $1.41, up 16 percent from prior year.

Second-quarter net sales were $18.2 billion, up five percent from prior year. Excluding the net impacts of foreign exchange, acquisitions and divestitures, organic sales increased five percent driven by a three percent increase in organic shipment
volume. Analysts expected revenue of $18.37 billion for the quarter.

For fiscal 2020, the company increased its guidance range for all-in GAAP net earnings per share growth to 235% to 245%. Also, the company raised its outlook for all-in sales growth from a range of three to five percent to a range of four to five percent growth.

The company now expects to pay over $7.5 billion in dividends and repurchase $7 billion to $8 billion of common shares in fiscal 2020. The prior guidance was over $7.5 billion in dividends and $6 billion to $8 billion of common share repurchases.

Shares of The Procter & Gamble Company were down nearly 3% in pre-market trade on Thrusday.

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