Investors Sell P&G (PG) After Muted Q2 Results, Lowered Guidance
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Price: $162.55 -0.03%
Revenue Growth %: +0.5%
Financial Fact:
Earnings from continuing operations: 1
Today's EPS Names:
FRSB, DGICA, UXIN, More
Revenue Growth %: +0.5%
Financial Fact:
Earnings from continuing operations: 1
Today's EPS Names:
FRSB, DGICA, UXIN, More
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The Procter & Gamble Company (NYSE: PG) today announced its results for the second quarter of fiscal 2012. Shares of PG are trading down 1.25 percent following the release.
Net sales rose 4 percent to $22.13 billion from $21.34 billion in the second quarter 2010. The Street's consensus was calling for $22.19 billion in total sales.
The cost of products sold rose 8 percent year over year to $11.12 billion, resulting in gross profit of $11.01 billion for the quarter.
Selling and administrative expenses fell 1 percent year over year to $6.71 billion.
Operating income declined 36 percent from $4.26 billion in the second quart of fiscal 2011 to $2.74 billion.
Diluted net earnings per share were $0.57 per share, reflecting non-core charges of $0.53 per share. The non-core items included a $0.50 per share non-cash impairment charge associated with the Appliances and Salon Professional businesses. Core net earnings per share were $1.10, topping the Street's consensus of $1.08.
Operating cash flow was $3.3 billion for the quarter and free cash flow was $2.4 billion.
Net sales are expected to increase three to four percent in fiscal 2012, while organic sales are expected to increase four to five percent. The Street forecasts a 4.3 percent increase in sales. Foreign exchange is expected to reduce net sales by one percent for the year. Pricing is expected to add four percent to sales while unfavorable product and geographic mix is expected to reduce sales by one to two percent.
Diluted net earnings per share for fiscal 2012 is expected to be in the range of $3.85 to $4.08 and Core EPS in the range of $4.00 to $4.10, up one to four percent versus a base period Core EPS of $3.95. The Company’s prior guidance range for Core EPS was $4.15 to $4.33. The change in the Core EPS range is primarily due to foreign exchange, which has negatively impacted earnings per share by $0.15 to $0.18 since the estimates established at the beginning of the fiscal year. The Street’s consensus calls for earnings of $4.17 per share for the fiscal year.
"We continue to make progress against our key business priorities in a difficult macroeconomic environment," said Chairman of the Board, President and Chief Executive Officer Bob McDonald. "We delivered solid top-line growth and continued to accelerate productivity improvements to drive down costs. With the easing of commodity cost comparisons over the next two quarters, continued solid top-line growth and cost savings progress, we expect operating profit growth to accelerate in the second half of the fiscal year."
Net sales rose 4 percent to $22.13 billion from $21.34 billion in the second quarter 2010. The Street's consensus was calling for $22.19 billion in total sales.
The cost of products sold rose 8 percent year over year to $11.12 billion, resulting in gross profit of $11.01 billion for the quarter.
Selling and administrative expenses fell 1 percent year over year to $6.71 billion.
Operating income declined 36 percent from $4.26 billion in the second quart of fiscal 2011 to $2.74 billion.
Diluted net earnings per share were $0.57 per share, reflecting non-core charges of $0.53 per share. The non-core items included a $0.50 per share non-cash impairment charge associated with the Appliances and Salon Professional businesses. Core net earnings per share were $1.10, topping the Street's consensus of $1.08.
Operating cash flow was $3.3 billion for the quarter and free cash flow was $2.4 billion.
Net sales are expected to increase three to four percent in fiscal 2012, while organic sales are expected to increase four to five percent. The Street forecasts a 4.3 percent increase in sales. Foreign exchange is expected to reduce net sales by one percent for the year. Pricing is expected to add four percent to sales while unfavorable product and geographic mix is expected to reduce sales by one to two percent.
Diluted net earnings per share for fiscal 2012 is expected to be in the range of $3.85 to $4.08 and Core EPS in the range of $4.00 to $4.10, up one to four percent versus a base period Core EPS of $3.95. The Company’s prior guidance range for Core EPS was $4.15 to $4.33. The change in the Core EPS range is primarily due to foreign exchange, which has negatively impacted earnings per share by $0.15 to $0.18 since the estimates established at the beginning of the fiscal year. The Street’s consensus calls for earnings of $4.17 per share for the fiscal year.
"We continue to make progress against our key business priorities in a difficult macroeconomic environment," said Chairman of the Board, President and Chief Executive Officer Bob McDonald. "We delivered solid top-line growth and continued to accelerate productivity improvements to drive down costs. With the easing of commodity cost comparisons over the next two quarters, continued solid top-line growth and cost savings progress, we expect operating profit growth to accelerate in the second half of the fiscal year."
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