American multinational consumer goods corporation, Procter & Gamble, announced quarterly performance results on Thursday. The earnings report highlighted the company’s revenue to have dropped in the recent quarter after five consecutive quarters that posted remarkable gains. The company blamed a stronger dollar and downbeat performance of the baby segment, especially the falling demand of Pampers diapers to have resulted in lower than expected quarterly revenue.
Procter & Gamble Beat Analysts’ Estimate For Earnings Per Share
Regardless of the poor quarterly results, the company upgraded its forecast for fiscal 2020 that beat the analysts’ estimate for earnings. Based on Refinitiv’s data, experts had anticipated $18.37 billion in revenue for Procter & Gamble in the fiscal second quarter. At $18.24 billion, the revenue came out to be significantly shy of the estimate in Thursday’s report. The company, however, made $1.42 of earnings per share (adjusted) in Q2 versus the analysts’ forecast of $1.37.
While Procter & Gamble was reported trading around 2% down before the market opened, the stock picked up the pace and traded 1% higher later in the day. In a broader perspective, P&G has noted an around 1.5% growth in January. On a yearly basis, the stock ended the last year with over 30% gain in the stock market.
Net income in the second quarter came out at $3.72 billion as compared to $3.19 billion in the same quarter last year. On sales front, analysts had expected the company to print $18.37 billion. While $18.24 billion in sales, highlighted in Thursday’s earnings report, was shy of the estimate, it was still reported to have surged 5% as compared to last year. Much of the gain in terms of sales was attributed to the Procter & Gamble’s health and beauty units.
Other Noticeable Figures In Thursday’s Earnings Report
In the healthcare unit, P&G saw a remarkable 7% hike in quarterly organic sales while its beauty business recorded an even bigger 8% increase in organic sales in the second quarter. Within the beauty segment, personal care products particularly for skin contributed to the most in upbeat sales figure. The fabric and homecare unit also noted an around 5% increase in quarterly organic sales.
For fiscal 2020, Procter & Gamble announced that it anticipates its sales to grow by 4% to 5%. In a previous forecast, the P&G’s estimate for 2020 sales was from 3% up to 5%. The company also declared that it expects its EPS to climb 8% to 11% in fiscal 2020 versus the previous forecast of 5% to 10% for earnings per share.