Procter & Gamble Co. Earnings: Here’s Why the Stock is Popping Now

Procter & Gamble Co. (NYSE:PG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.41%.

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Procter & Gamble Co. Earnings Cheat Sheet

Results: Net income increased over 140% to $4.06 billion ($1.22 per diluted share) in the quarter versus a net gain of $1.69 billion in the year-earlier quarter.

Revenue: Rose 0.2% to $22.18 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Procter & Gamble Co. reported adjusted net income of $1.22 per share. By that measure, the company beat the mean analyst estimate of $1.11. It beat the average revenue estimate of $21.91 billion.

Quoting Management: “Our second quarter results were at the high end of our expectations on the top-line and well ahead of forecast on operating profit, earnings per share and cash flow,” said Chairman, President, and Chief Executive Officer, Bob McDonald. “Global market share trends improved as we continued to implement our growth strategy and made very good progress against our productivity and cost savings goals. Our strong first half results have enabled us to raise our sales, earnings and share repurchase outlook for the fiscal year, while we strengthen investments in our innovation and marketing programs.”

Key Stats:

Revenue increased 6.95% from $20.74 billion in the previous quarter. Net income increased 44.28% from $2.81 billion in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.95 and has not changed. For the current year, the average estimate has moved up from a profit of $3.95 to a profit of $3.97 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)