Procter & Gamble Beats on Both Top and Bottom Lines

Procter & Gamble (NYS: 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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The article Procter & Gamble Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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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