Procter & Gamble Rises On Q2 Earnings Beat, Ups View

The Procter & Gamble Company (PG - Free Report), popularly known as P&G, reported second-quarter fiscal 2019 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. This marked the company’s 15th straight earnings beat. Further, earnings improved year over year while sales remained flat, largely due to adverse currency fluctuations.

Nonetheless, shares of the company rose 3.4% in the pre-market session, driven by its robust view for fiscal 2019. Further, this Zacks Rank #2 (Buy) stock has gained 2.4% in the past year against the industry’s decline of 2.5%.

P&G’s core earnings for the fiscal second quarter were $1.25 per share, up 5% year over year. The company’s earnings beat the Zacks Consensus Estimate of $1.21. The upside was primarily driven by benefits from tax reforms. Currency-neutral core earnings per share (EPS) improved 13%.

Procter & Gamble Company (The) Price, Consensus and EPS Surprise

Procter & Gamble Company (The) Price, Consensus and EPS Surprise | Procter & Gamble Company (The) Quote

Sales in Detail

P&G reported net sales of $17,438 million, which surpassed the Zacks Consensus Estimate of $17,192 million. However, the top line remained nearly flat year over year and was hurt by currency fluctuations to the tune of about 4%.
Organically (excluding impacts of acquisitions, divestitures and foreign exchange), revenues grew 4%, driven by a 2% rise in shipment volumes. Further, organic sales benefited 1% each from favorable mix and pricing. Notably, all of the business segments, except Grooming, reported organic sales growth.

In the reported quarter, Beauty, and Fabric & Home Care segments registered organic sales growth of 8% and 6%, respectively. Organic sales improved 5% for the Health Care division and 3% for the Baby, Feminine and Family Care segment. Conversely, organic sales for the Grooming segment dipped 3%.

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