Procter & Gamble Stock Surges On Q2 Earnings Beat: Retail Cheers

synopsis

Shares of consumer packaged goods giant Procter & Gamble (PG) surged nearly 2% on Wednesday after the company posted better-than-expected second-quarter earnings, lifting retail sentiment.

Procter & Gamble posted earnings per share of $1.88, above the $1.86 that Wall Street analysts expected; its revenues stood at $21.88 billion, rising 2% over prior year, beating estimates of  $21.54 billion, according to Stocktwits data. It saw sales growth between 2% and 4% across all of its main segments.

P&G maintained its fiscal 2025 diluted net earnings per share growth to be in the range of 10% to 12% versus fiscal 2024 diluted net EPS of $6.02.

“The P&G team delivered an acceleration in organic sales growth, core EPS growth and strong cash return to shareowners in the second quarter,” Jon Moeller, chairman, president and CEO said. “Our first-half results keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year.”

P&G reaffirmed the range for fiscal 2025 all-in sales growth at between two to four percent versus the prior year, but warned about certain macro challenges.  

“The combined headwinds from foreign exchange and divestitures are expected to negatively impact all-in sales growth by approximately one percentage point,” the company said.

Sentiment on Stocktwits turned ‘extremely bullish’ from ‘neutral’ a week ago. Message volumes were in the ‘extremely high’ zone compared to ‘low’ in the same period.

PG sentiment meter and message volumes on Jan 23 as of 2:37 a.m. ET

Procter & Gamble expects adjusted free cash flow productivity of 90% and pay around $10 billion in dividends and repurchase $6 to $7 billion of common shares in fiscal 2025.

PG stock is down 1.74% year-to-date.

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