On Friday household products maker The Procter & Gamble Company (PG) saw its profit soar in the second quarter, easily beating the Wall Street view.
The Cincinnati, Ohio-based company said its second quarter net income came in at $4.06 billion, or $1.39 per share, more than doubling the $1.69 billion, or 57 cents per share, earned a year earlier.
Adjusting for one-time items such as restructuring costs and acquisitions, P&G earned $1.22 per share. This beat the company’s estimate of $1.07 per share and the analyst view of $1.13 per share, according to Thomson Reuters.
Revenue was up +2% to $22.18 billion.
The company, under CEO Bob McDonald, is in the midst of a restructuring to help boost results. The company has been increasing prices and releasing improved products to help jump-start growth in under-performing markets like the US.
Fiscal 2013 guidance is also up, with the company now predicting an EPS between $3.97 and $4.07, up from the previous forecast of $3.80 to $4 per share.
The company also announced that it is planning a share repurchase between $5 billion and $6 billion worth of stock.
P&G shares were up $1.43, or +2.04%, during pre-market trading on Friday. The stock is up +6.33% over the past year.
The Bottom Line
Shares of Procter & Gamble (PG) have a 3.20% dividend yield, based on last night’s closing stock price of $70.42. The stock has technical support in the $66-$68 price area. The stock is trading near all-time highs.
The Procter & Gamble Company (PG) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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