Jim Cramer is bullish on P&G shares after its Q2 earnings

Procter & Gamble Co (NYSE: PG), on Thursday, reported its financial results for the second quarter that came in roughly in line with Street estimates. The stock is still down as shareholders expected more from the consumer goods company.  

Why are P&G shares down today?

Shares are responding to shipment volumes that fell a more than expected 6.0% versus last year even though a 10% increase in prices fuelled a 5.0% annualised growth in organic sales on a constant currency basis and excluding acquisitions.

Discussing the prospect of a recession on CNBC’s “Squawk on the Street”, CEO Jon Moeller said:

Jim Cramer’s take on P&G shares

For the full financial year, Procter & Gamble continues to see up to a 4.0% increase in its per-share earnings.

It, however, raised its sales guidance on Thursday and now expects that metric to remain roughly unchanged on a year-over-year basis. Reacting to the earnings print, famed investor Jim Cramer said:

Wall Street consensus currently is also to buy P&G shares.

P&G fourth-quarter financial highlights

• Earned $3.93 billion versus the year-ago $4.22 billion
• Per-share earnings also fell from $1.66 to $1.59
• Adjusted EPS was also $1.59 as per the press release
• Sales slipped nearly 1.0% year-on-year to $20.77 billion
• Consensus was $1.59 a share on $20.73 billion revenue

Versus early October, P&G shares are up roughly 15% at writing.