Procter & Gamble Solid Q2 Earnings, Upbeat Organic Sales Outlook
Procter & Gamble reported better than expected fiscal second-quarter financial results before the markets opened on Friday.
[cnxvideo id=”625494″ placement=”ros”]Procter & Gamble Co. (NYSE: PG) reported its fiscal second-quarter financial results before the markets opened on Friday. The company posted $1.08 in earnings per share (EPS) and $16.86 billion in revenue. The consensus estimates from Thomson Reuters called for $1.06 in EPS and revenue of $16.77 billion. The same period of last year reportedly EPS of had $1.04 and $16.91 billion in revenue.
In the fiscal second quarter, organic sales increased 2%. Organic sales and organic volume increased in all five business segments.
The company reported its business segments as:
- Beauty reported net sales of $2.94 billion
- Grooming saw net sales of $1.79 billion
- Health Care had net sales of $2.07 billion
- Fabric & Home Care had net sales of $5.27 billion
- Baby, Feminine & Family Care reported net sales of $4.65 billion
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Operating cash flow was $3.0 billion for the quarter. Adjusted free cash flow productivity was 82%. The company returned $1.8 billion of cash to shareholders as dividends, repurchased $1.5 billion of common stock and exchanged shares with a value of $9.4 billion in the Beauty Brands transaction.
On the books, its cash and cash equivalents totaled $7.1 billion at the end of the quarter, versus $6.8 billion at the end of the same period of last year.
David Taylor, chairman, president and CEO of P&G, commented:
We delivered good results in the second quarter in a difficult operating environment. 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.
Shares of P&G closed Thursday at $84.70, with a consensus analyst price target of $89.59 and a 52-week trading range of $76.55 to $90.33. Following the release, the stock was up 3% at $87.29 in early trading indications Friday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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