Procter & Gamble Analysis: Dow Earnings

BOSTON (TheStreet) -- Procter & Gamble (PG) has announced quarterly results.

Quarterly Synopsis: P&G's fiscal second-quarter GAAP earnings rose 10% to $1.11 a share. Sales ascended 2% to $21 billion. Total volume growth of 6% and organic sales growth of 3% were offset by unfavorable foreign exchange impacts. The company expanded market share in all key segments as it continues to push its products in emerging markets with burgeoning middle classes. However, the company's gross and operating margins both declined due to unfavorable pricing and higher commodity costs, which more than offset savings from manufacturing efficiency and scale leverage. P&G repurchased $500 million of stock during the quarter.

Earnings Performance: P&G delivered adjusted earnings of $1.11, representing 9.9% year-over-year growth and surpassing Wall Street's consensus target of $1.09 by 1.5%. It also exceeded earnings expectations in the previous quarter and has an average earnings beat rate of 0.5%. P&G posted adjusted sales of $21 billion, narrowly missing consensus by 1%. P&G has a sales beat rate of 0.4%, but has missed for nine consecutive quarters.

Dividend Information: P&G pays a quarterly dividend of 48 cents, translating to an annual yield of 3%. The company has grown the distribution 9.5% in the past 12 months and 11% annually, on average, over three- and five-year spans.

Analyst Opinions: Of researchers following P&G, 20 rate its stock "buy" and nine rate it "hold." None rank it "sell." The stock has a median 12-month target of $72.19.

Goldman Sachs, Buy, $75 Target
Credit Suisse, Outperform, $74 Target
JPMorgan, Neutral, $73 Target
UBS, Buy, $72 Target
Deutsche Bank, Hold, $70 Target
Barclays, Overweight, $70 Target
Citigroup, Buy, $69 Target
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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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