Procter & Gamble Beats on Q2 EPS, Sees Q3 Growth Above Consensus

Procter & Gamble (NYSE:PG) reported fiscal Q2 core EPS of $1.13, above the consensus estimate of $1.10. Revenue rose to $21.35 billion but fell short of analyst estimates of $21.57 billion.

The company said it sees Q3 sales growth of 5-7% (vs. 4.9% estimate) and sees Q3 core EPS of $0.95-$1.00 vs. a $0.99 estimate.

P&G reaffirmed its full-year guidance and sees core EPS growth of 7-9% and sees total sales up 3-5% with organic sales growth of 4-6%. Analysts are looking for sales growth of 4.4%. The full-year EPS estimate equates to $3.91-$4.01 which compares to a Street projection of $3.98.

Chairman, President and CEO Bob McDonald said, "We are expanding market shares by touching and improving the lives of more consumers in more parts of the world, more completely through our innovation and expansion plans. This is driving strong volume and sales growth ahead of market levels. Core EPS is ahead of year-ago levels, and we are on track to deliver seven to nine percent growth for the year."

The company said its gross margin declined 190 basis points primarily due to higher commodity costs but McDonald believes they are in "good shape" for the coming year and can achieve their objectives.

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