P&G shares fall after earnings match expectations, but volume falls more than some expected


Shares of Procter & Gamble Co. PG,
fell 1.2% in premarket trading on Thursday after the branded consumer goods company reported fiscal second-quarter profit that matched expectations, but volume fell more than some analysts had predicted. Net income fell to $3.93 billion, or $1.59 per share, from $4.22 billion, or $1.66 per share, in the year-ago period. Excluding one-time items, adjusted earnings per share of $1.59 matched the FactSet consensus of $1.59. Revenue fell 0.9% to $20.77 billion, the first year-over-year decline since the quarter ended June 2017, but just above the FactSet consensus of $20.73 billion. Excluding the impact of currency translation and acquisitions, organic sales increased 5% as price increases of 10%, more than some analysts had expected, helped offset a larger-than-expected 6% decline in shipment volumes. For 2023, the company reaffirmed earnings per share growth outlook of flat to 4%, but raised its sales outlook from 3% to 1% down to flat. The stock is up 12.3% over the past three months through Wednesday, as the SPDR Consumer Staples Select Sector ETF XLP,
has stuck at 5.7% and the S&P 500 SPX,
has gained 6.3%.

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