Procter & Gamble Raises Sales Forecasts
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Procter & Gamble Co. (PG) on Wednesday increased its sales forecast for the second-quarter and full-year periods, citing better-than-expected shipment volume and beneficial foreign-exchange translation.
The maker of personal care products and food and beverages now expects sales for the quarter to increase 6 percent to 8 percent, up from an earlier estimate of 5 to 7 percent growth. The forecast includes a 1 to 2 percent benefit from foreign exchange rates.
Quarterly shipments are projected to increase 6 percent to 7 percent — toward the top end of the previous guidance. The company said it is comfortable with its previous earnings guidance of 71 cents to 72 cents per share for the quarter.
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In the year-ago quarter, the company posted earnings per share of 65 cents on revenue of $13.22 billion. Analysts surveyed by Thomson First Call predict earnings per share of 72 cents on revenue of $14.09 billion.
For the fiscal year, the company now expects total sales to increase 6 to 9 percent, above the prior guidance of 5 percent to 6 percent growth. Shipment volume is projected to increase 6 to 8 percent over last year — slightly higher than previous expectations. The company said it is "comfortable with the upper-half of analysts' range of estimates, which equates to $2.59 to $2.61 per share."
Last year the company posted earnings per share of $2.32 on revenue of $51.41 billion.
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Procter & Gamble shares rose 99 cents, or 1.8 percent, to close at $55.03 on the New York Stock Exchange (search), then fell 18 cents to $54.85 in aftermarket trading.