P&G Raises Profit Outlook -- Earnings Review

By FeaturesDow Jones Newswires

Procter & Gamble shares fell 1.4% to $90.63 during premarket trading after reporting second-quarter earnings. Here's what you need to know:

EARNINGS: As reported profit fell as a result of a divestiture, "core" profit rose 10% to $1.19 per share, topping analysts' expectations.

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REVENUE: Sales grew 3.2% to $17.4 billion, compared with the $17.39 billion analysts were looking for. Organic revenue rose 2% from a year ago, better than the 1% growth in the first quarter. Organic sales growth was led by gains in the beauty business, which was partially offset by declines in the grooming segment and baby, feminine and family-care segment.

TAX WATCH: P&G reported a net charge of $628 million in the quarter for repatriating its overseas profits. However, the company expects to obtain a net benefit of $135 million in fiscal 2018 from a reduced tax rate. The company said the benefit will increase in the future as the 21% corporate tax rate is fully phased in.

OUTLOOK: The consumer giant raised the high end of its annual earnings-per-share outlook by a percentage point due to the newly enacted tax law. The company now expects adjusted earnings growth of 5% to 8%, compared with prior guidance of up to 7% growth.

Write to Imani Moise at imani.moise@wsj.com

(END) Dow Jones Newswires

January 23, 2018 09:06 ET (14:06 GMT)

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