Procter & Gamble Co (NYSE: PG), on Thursday, reported its financial results for the second quarter that came in roughly in line with Street estimates. The stock is still down as shareholders expected more from the consumer goods company.
Shares are responding to shipment volumes that fell a more than expected 6.0% versus last year even though a 10% increase in prices fuelled a 5.0% annualised growth in organic sales on a constant currency basis and excluding acquisitions.
Discussing the prospect of a recession on CNBC’s “Squawk on the Street”, CEO Jon Moeller said:
Things look good across the world. Let’s assume China does recover, U.S. economy continues to be strong, demand for our products continue to be strong, our markets continue to grow. Put that together, and it doesn’t look horrible.
For the full financial year, Procter & Gamble continues to see up to a 4.0% increase in its per-share earnings.
It, however, raised its sales guidance on Thursday and now expects that metric to remain roughly unchanged on a year-over-year basis. Reacting to the earnings print, famed investor Jim Cramer said:
P&G is a dividend aristocrat that does well over time. For the people at home, it’s a terrific idea. I own it for the Charitable Trust. I’ll tell people to buy it at $140, $135. This is a great American company that’s growing organic volume.
Wall Street consensus currently is also to buy P&G shares.
Versus early October, P&G shares are up roughly 15% at writing.
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