Procter & Gamble Ups Guidance

Procter & Gamble(PG Quote) said third-quarter earnings will be better than expected, thanks to a 10% jump in organic volume compared with last year. The company also raised its dividend and said it will split its stock, 2 for 1.

P&G said third-quarter and full-year earnings will top existing estimates by 1 cent or 2 cents a share, with third-quarter revenue up 20% from last year. Analysts currently expect the company to earn $1.06 a share on revenue of $12.40 billion in the quarter ending in March and 96 cents a share on revenue of $12.57 billion in the quarter ending in June.

It boosted its quarterly dividend to 50 cents from 45.5 cents, payable May 14, to stock of record April 23. The split will be distributed as a 100% stock dividend to shareholders of record May 21.

P&G said the volume growth is broad-scale across business units and geographies, led by health care, beauty care, fabric and home care, and developing markets. Foreign exchange is expected to increase sales by 3 or 4 percentage points, primarily due to strength of the euro, Canadian dollar and British pound. Acquisitions will add 7 to 9 percentage points to sales growth.

The stock closed Tuesday at $102.49, up 2 cents. The 52-week high is $104.