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Procter & Gamble Shares Up 3% On Strong Q4 Earnings, Improved Outlook

Published 01/23/2019, 07:02 AM
© Reuters.

Investing.com - Procter & Gamble's (NYSE:PG) second-quarter earnings and revenue came in ahead of forecasts Wednesday, while a strong performance by its skin care and beauty divisions led it to raise its forecast for organic sales growth.

The company's shares rose by some 3.4% to a five-week high in premarket trading in response to the news.

P&G reported earnings per share of $1.25 on revenue of $17.44B. Analysts polled by Investing.com expected EPS of $1.21 on revenue of $17.16B. That compared to EPS of $1.19 on revenue of $17.40B in the same period a year earlier. The company had reported EPS of $1.12 on revenue of $16.69B in the previous quarter .

The results were once again held back by the strength of the dollar, which depresses the value of P&G’s overseas earnings. Foreign exchange factors damped revenue by four percent.

Excluding the impacts of foreign exchange and merger activity, organic sales rose four percent.

“We delivered strong organic sales in the second quarter, building on our first quarter momentum, which enables us to increase our outlook for the year,” said David Taylor, Chairman, President and Chief Executive Officer.

The company now expects full-year organic sales to rise by between 2%-4% this year, up from a range of 2%-3% earlier. It also revised upwards its estimate of how much the strong dollar will hurt it. It now sees headwinds to revenue of $1.4 billion, up from $1.3 billion earlier.

P&G Beat Follows Other Strong Consumer Reports

On January 9, Constellation Brands B reported third quarter EPS of $2.37 on revenue of $1.97B, compared to forecasts of EPS of $2.06 on revenue of $1.91B.

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Lamb Weston Holdings earnings beat analysts' expectations on January 4, with second quarter EPS of $0.8 on revenue of $911.4M. Investing.com analysts expected EPS of $0.72 on revenue of $897.08M

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar

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