A Quick Look at the Procter & Gamble Profit Machine

| + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

With shares of Procter & Gamble Co. (NYSE:PG) trading at around $73.01, is PG an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

C = Catalyst for the Stock’s Movement

pg

Procter & Gamble never ceases to amaze investors. It’s one of the most consistent performers in existence. Quarterly income just more than doubled, and sales, earnings, and share repurchase outlooks were all raised.

Q2 EPS just came in at $1.22 versus an expectation of $1.11. Revenue came in at $22.18 billion versus an expectation of $21.91 billion. Gross margin increased 110 basis points thanks to higher pricing and manufacturing cost savings. Organic sales were up 3 percent. Net sales were up 2 percent. The only real negatives were higher pension and employee benefit costs, and restructuring charges related to the completion of the joint venture with Iberia.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

In regards to guidance, the EPS for the March quarter is expected to come in between $0.91 and $0.97. For the full year, EPS is expected to come in at $3.97 to $4.07. The repurchase outlook has been raised to $5 billion to $6 billion opposed to $4 billion to $6 billion.

Let’s take a look at some more important numbers for Procter & Gamble…

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business