Consumer goods giant Procter & Gamble Co. (PG) on Wednesday reported a 28 percent increase in profit for the second quarter from last year, when results were impacted by a charge related to the U.S. tax reform.
Both revenue and core earnings per share for the quarter beat analysts’ estimates. Looking ahead, the company affirmed its outlook for fiscal 2019 earnings, but raised its forecast for full-year sales growth. Shares of the company are gaining almost 3 percent in pre-market activity.
For the second quarter, net earnings attributable to P&G rose to $3.19 billion or $$1.22 per share from $2.50 billion or $0.93 per share in the prior-year period.
The year-ago quarter’s results include a tax charge related to the U.S. Tax Cuts and Jobs Act.
Core earnings per share for the quarter were $1.25, compared to $1.19 per share last year. On average, twenty analysts polled by Thomson Reuters expected the company to earn $1.21 per share. Analysts’ estimates typically exclude special items.
Net sales rose slightly to $17.44 billion from $17.40 billion in the prior year. Analysts had a consensus revenue estimate of $17.15 billion.
Unfavorable foreign exchange negatively impacted sales by 4 percent for the quarter.
Excluding the impacts of foreign exchange, acquisitions and divestitures, organic sales increased 4 percent, driven by a 2 percent increase in shipment volume. Pricing was a 1 percent help to organic sales.
Looking ahead to fiscal 2019, P&G maintained its expectation for core earnings per share growth of 3 to 8 percent versus fiscal 2018 core earnings per share of $4.22. On an all-in reported basis, the company expects net earnings per share to increase 17 to 24 percent versus the prior year.
P&G raised the high end of its full-year guidance range for organic sales. The company now projects organic sales growth in a range of 2 to 4 percent, compared to the prior range of 2 to 3 percent.
The company now estimates fiscal 2019 all-in sales growth in the range of down 1 percent to up 1 percent, compared to the prior range of down 2 percent to in-line versus the prior fiscal year.
The Street expects the company to report earnings of $4.42 per share for the year on revenues of $66.83 billion.