P&G Tops Estimates, Set for New High
On a GAAP basis, the company reported second-quarter EPS of $1.39, compared with $0.56 in the second quarter a year ago. GAAP earnings do not include a restructuring charge of $0.05 per share and a gain of $0.21 per share on the company’s purchase of the balance of joint venture.
The company’s CEO said:
Global market share trends improved as we continued to implement our growth strategy and made very good progress against our productivity and cost savings goals. Our strong first half results have enabled us to raise our sales, earnings and share repurchase outlook for the fiscal year, while we strengthen investments in our innovation and marketing programs.
The company raised its full-year adjusted EPS guidance from $3.85 to a new range of $3.97 to $4.07. Sales guidance was raised from a previous range of 2% to 4% above fiscal 2012 totals to a new range of 3% to 4%. P&G also expects to raise its share buybacks from $4 billion to $6 billion to a new range of $5 billion to $6 billion.
P&G previously said it plans to cut its nonmanufacturing workforce by 2% to 4% annually between 2014 and 2016, in addition to 5,700 layoffs by the end of 2013.
P&G’s shares are up more than 2% in premarket trading at $71.88, a new 52-week high if it holds. The current 52-week range is $59.07 to $70.99. Thomson Reuters had a consensus analyst price target of around $74.80 before today’s report.