Procter & Gamble said core earnings for the three months ending in December, the company's fiscal second quarter, came it at $1.41 per share, up 12.8% from the same period last year and 4 cents ahead of the Street consensus forecast of $1.37 per share. Group revenues, however, rose only 4.35% to $18.2 billion, missing analysts' estimates of an $18.4 billion tally.
Looking into the group's 2020 fiscal year, P&G said it sees core earnings growth of between 8% and 11%, up from its prior forecast of 5% to 10%, and a 4% to 5% gain for organic sales growth.
“We delivered another strong quarter of organic sales growth, core earnings per share and cash returned to shareowners,” said CEO David Taylor. “Our strong first half results enable us to further increase our outlook for the full fiscal year across each of these metrics and to increase our commitment of cash return to shareowners."
"Our focus remains on executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture to deliver balanced top-line and bottom-line growth along with strong cash generation in a challenging competitive and macroeconomic environment,” he added.
P&G shares were marked 0.2% lower following the earnings release to change hands at $ 125.24 each, a move that would trim the stock's six-month gain to around $7.8%.
Baby, feminine and family care segment sales rose 1% from last year, P&G said, while organic sales from its grooming segment were 4% higher. Beauty sales, however, lead the growth pack with an 8% increase, driven by "premium innovation and increased pricing", P&G said.
"Hair Care organic sales increased mid-single digits driven by premium innovation, positive mix impact from the disproportionate growth of premium products and devaluation-driven price increases," P&G noted.