Procter & Gamble
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Procter & Gamble met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Procter & Gamble logged revenue of $22.14 billion. The 16 analysts polled by S&P Capital IQ hoped for revenue of $22.19 billion. Sales were 3.7% higher than the prior-year quarter's $21.35 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.10. The 17 earnings estimates compiled by S&P Capital IQ averaged $1.08 per share on the same basis. GAAP EPS of $0.57 for Q2 were 49% lower than the prior-year quarter's $1.11 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 49.7%, 210 basis points worse than the prior-year quarter. Operating margin was 19.4%, 60 basis points worse than the prior-year quarter. Net margin was 7.6%, 800 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $20.92 billion. On the bottom line, the average EPS estimate is $1.06.
Next year's average estimate for revenue is $86.11 billion. The average EPS estimate is $4.16.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 7,296 members out of 7,525 rating the stock outperform, and 229 members rating it underperform. Among 1,930 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,902 give Procter & Gamble a green thumbs-up, and 28 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 $71.41.
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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. 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.