Procter & Gamble Beats on Both Top and Bottom Lines

Procter & Gamble (NYSE: PG ) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Procter & Gamble beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share expanded significantly.

Margins increased across the board.

Revenue details
Procter & Gamble booked revenue of $22.18 billion. The 17 analysts polled by S&P Capital IQ expected to see sales of $21.92 billion on the same basis. GAAP reported sales were 2.0% higher than the prior-year quarter's $21.74 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.22. The 22 earnings estimates compiled by S&P Capital IQ predicted $1.11 per share. GAAP EPS of $1.39 for Q2 were 144% higher than the prior-year quarter's $0.57 per share. (The prior-year quarter included $0.01 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 51.3%, 120 basis points better than the prior-year quarter. Operating margin was 21.3%, 180 basis points better than the prior-year quarter. Net margin was 18.3%, 1,050 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $20.88 billion. On the bottom line, the average EPS estimate is $0.96.

Next year's average estimate for revenue is $84.91 billion. The average EPS estimate is $4.06.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 7,406 members out of 7,651 rating the stock outperform, and 245 members rating it underperform. Among 1,979 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,946 give Procter & Gamble a green thumbs-up, and 33 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Procter & Gamble is outperform, with an average price target of $73.76.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Procter & Gamble. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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