P&G stocks rally as second quarter earnings shatter expectations

P&G Stocks

There is no sweeter victory than surpassing expectations.

P&G stocks jumped sharply on Friday session as the consumer goods maker released its second quarter earnings report, showing that its quarterly sales and profit smashed consensus analysts’ anticipation while the company’s forecast for organic sales growth for 2017 fiscal year was raised.

Strong Second Quarter

Procter & Gamble, the maker of Tide Detergent and Pampers diapers based on Cincinnati, Ohio, tallied net sales of $16.85 billion in the second quarter ended in December 31, 2016, surpassing the forecast in Wall Street of just $16.77 billion.

With the news, P&G stocks rose sharply by 3.2%, which helped the blue chip Dow Jones Industrial average snapped its five-day losing streak and steered the index back to the bullish territory.

Dow finished 94.85 points higher, or 0.5%, to close at 19827.25.

Another impressive figure on the recent reports on its sales and profits earning was the adjusted earnings per share that came in at $1.06, compared to the $1.06 adjusted EPS expectation of FactSet Consensus.

That was derived from the second quarter earnings of $7.9 billion or $2.88per share in the second quarter from the $3.2 billion or $1.12 per share in the previous quarter.

With a strong performance in the period from October to December last year, the consumer goods maker announced that dividends will be paid on Wednesday, February 15th, amounting to $0.6695 per share, which represents a $2.68 dividend on a yearly basis.

The company had also raised its organic sales growth for the fiscal 2017, from just 2% to a range of 2-3%.

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