Procter & Gamble Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Procter & Gamble (NYSE:PG) will unveil its latest earnings tomorrow, Friday, January 25, 2013. Procter & Gamble sells and markets consumer products such as pharmaceuticals, cleaning supplies, personal care, and pet supplies in more than 180 countries.

Procter & Gamble Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.11 per share, a rise of 0.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.10. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.11 during the last month. Analysts are projecting profit to rise by 3.1% compared to last year’s $3.97.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 10 cents, reporting net income of $1.06 per share against a mean estimate of profit of 96 cents per share.

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A Look Back: In the first quarter, profit fell 6.9% to $2.81 billion (96 cents a share) from $3.02 billion ($1.03 a share) the year earlier, but exceeded analyst expectations. Revenue fell 5.4% to $20.74 billion from $21.92 billion.

Here’s how Procter & Gamble traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

PG

Analyst Ratings: With 11 analysts rating the stock as a buy, one rating it as a sell and 10 rating it as a hold, there are indications of a bullish outlook.

Wall St. Revenue Expectations: On average, analysts predict $21.89 billion in revenue this quarter, a decline of 1.1% from the year-ago quarter. Analysts are forecasting total revenue of $84.27 billion for the year, a rise of 0.7% from last year’s revenue of $83.68 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 0.2% in the third quarter of the last fiscal year and 3.1% in fourth quarter of the last fiscal year before falling again in the first quarter.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 44.7% in the fourth quarter of the last fiscal year before dropping in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.97 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)