Procter & Gamble (NYSE: PG) is higher in early trade Tuesday following solid second quarter earnings before the bell.

Procter & Gamble reported Q2 EPS of $1.04, $0.06 better than the analyst estimate of $0.98. Revenue for the quarter came in at $16.9 billion versus the consensus estimate of $16.94 billion. P&G also said it is maintaining its outlook for organic sales growth of in-line to up low-single digits versus fiscal 2015. It is also maintaining its guidance for constant currency Core EPS growth of mid-to-high single digits.

Stifel analyst Mark Astrachan said "most importantly, core sales growth accelerated sequentially on a y/y and 2-year CAGR basis, +2% and +2%, respectively, compared to -1% and 0% in F1Q16."

"Overall, we believe accelerating sales growth is most important, which coupled with continued margin expansion, suggests the company has meaningful earnings flexibility to selectively reinvest," he added. "We continue to think announced cost savings are achievable and likely conservative." The firm maintained a Buy rating and $85 price target.

Shares of PG last traded up 3.4% to $79.44.