Procter & Gamble results disappoint, forecast raised
The company now expects sales growth of 4% to 5% in fiscal 2020
Stocks impacted: Procter & Gamble (PG)
Procter & Gamble reported its second-quarter organic revenue miss for the first time in five quarters. Revenue came in at $18.24 billion versus estimates of $18.37 billion. Still, revenue was 4.59% higher than the $17.44 billion reported in fiscal Q2 2019. Net income arrived at $3.72 billion, or $1.41 per share, up from $3.19 billion, or $1.22 per share, a year earlier. Organic sales, which exclude deals and currency changes, grew 5% from the year-ago period versus +5.6% expected. Net sales rose 5% to $18.24 billion, falling short of expectations of $18.37 billion. The company now expects sales growth of 4% to 5% in fiscal 2020, up from its prior range of 3% to 5%. It also expects core earnings per share to increase to a range of 8% to 11%, up from its prior range of 5% to 10%. As a reminder, earlier this month, Procter & Gamble announced plans to acquire Billie, a direct-to-consumer shaving company aimed at women. The company’s stocks declined nearly 0.5% following the report.
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