Procter & Gamble (NYSE:PG) reported second-quarter results that showed a mixed performance. The company achieved a 4% growth in organic revenue, slightly missing the average analyst projection of 4.6%.
Despite this, P&G recorded a notable increase in core earnings per share (EPS), posting $1.84 compared to $1.59 in the previous year, surpassing the forecasted $1.70. Net sales for the quarter were $21.44 billion, a 3.2% year-over-year increase but just below the expected $21.57 billion.
The modest underperformance in top-line revenue was attributed to weaker performances in the Beauty and Health Care sectors. Beauty’s organic sales grew by only 1%, against expectations of 3.8%, and Health Care’s organic sales increased by 2%, compared to the anticipated 5.1%. However, the gross margin of 52.7% exceeded the estimated 50.3%, a positive outcome for the company.
Following the results, the company’s shares gained more than 4% intra-day today.
Looking ahead, Procter & Gamble adjusted its full-year guidance for core EPS growth to between 8% and 9%, an increase from the previously forecasted range of 6% to 9%. The company now expects its core EPS to be in the range of $6.37 to $6.43, compared to the consensus estimate of $6.41.
P&G maintained its forecast for organic revenue growth at 4% to 5%, consistent with prior estimates and compared to the Street’s expectation of 4.9%.