The Procter & Gamble Company Q4 Earnings Decline, but Beat Estimates; Revenue Misses (PG)

On Friday, consumer products company The Procter & Gamble Company (PG) reported that its earnings for the fourth quarter have dipped, but have come in above analysts’ estimates. 

PG’s Earnings in Brief

PG reported Q2 earnings of $3.43 billion, or $1.18 per share, down from $4.06 billion, or $1.39 per share, a year ago. Excluding special items, earnings were $1.21 per share, up from $1.22 per share last year. Analysts expected to see earnings of $1.20 per share. Revenue was $22.28 billion, up from $22.18 billion, but came in below analysts’ estimate of $22.33 billion. Looking forward, the company expects to see FY2014 EPS growth between 5-7% and net sales growth between 1-2%. Analysts are estimating earnings of $4.27 per share and $85.81 billion in revenue.

CEO Commentary

PG’s CEO, President and Chairman  A.G. Lafley said in a statement: ”We expect strong earnings growth in the second half of the fiscal year driven by solid top-line growth, moderating headwinds from foreign exchange, and productivity savings that build throughout the year.”

PG’s Dividend

The company declared its last quarterly dividend of 60.15 cents on January 14. This dividend will be payable to shareholders on February 18. PG will likely announced its next dividend in April. We expect the company to  raise its dividend when it declares its next dividend.

Stock Performance

Procter & Gamble shares were up 71 cents, or 0.91%, during pre-market trading Friday.