[ACCESSWIRE]
Upcoming AWS Coverage on Kimberly-Clark Post-Earnings Results
LONDON, UK / ACCESSWIRE / January 26, 2017 / Active Wall St. announces its post-earnings coverage on The Procter & Gamble Co. (NYSE: PG). The Company posted its second quarter fiscal 2017 results on January 20, 2017. The maker of Gillette razors and Pampers diaper topped earnings expectations. Register with us now for your free membership at:
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One of Procter & Gamble's competitors within the Personal Products space, Kimberly-Clark Corp. (NYSE: KMB), released its Q4 and full-year 2016 results on Tuesday, January 24, 2017. AWS will be initiating a research report on Kimberly-Clark in the coming days.
Today, AWS is promoting its earnings coverage on PG; touching on KMB. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=PG
http://www.activewallst.com/registration-3/?symbol=KMB
Earnings Reviewed
For the three months ended on December 31, 2016, P&G reported net sales of $16.9 billion, unchanged versus the prior year, including a negative 2% impact from foreign exchange. The Company's revenue numbers came in below analysts' consensus estimates of $16.94 billion. P&G's organic sales increased 2% on a y-o-y basis driven by a 2% increase in organic shipment volume. Organic sales and organic volume increased in all five business segments.
For Q2 FY17, P&G's reported gross margin increased 80 basis points to 50.8%, including a 10 basis point benefit from lower non-core restructuring charges. The Company's Core (adjusted) gross margin improved 70 basis points in the reported quarter to 51.7%, including 50 basis points of negative foreign exchange impacts. During Q2 FY17, P&G's reported that operating profit margin increased 20 basis points to 23.0 %. Core operating profit margin was in-line with the prior year at 23.4%, including 60 basis points of foreign exchange impacts.
For Q2 FY17, P&G's diluted net earnings per share were $2.88, an increase of 157% versus the prior year, including a gain of $1.95 per share from the Beauty Brands divestiture to Coty, which closed on October 01, 2016, non-core restructuring charges of $0.03 per share and a non-core charge for early debt retirement of $0.13 per share. Core earnings per share which exclude non-core restructuring charges, early debt retirement fees and the results of discontinued operations, were $1.08, an increase of 4% versus the prior year. The Company's adjusted earnings numbers outperformed Wall Street's estimates of $1.06 per share.
Segment Results
During Q2 FY17, P&G's Beauty segment reported net sales of $2.94 billion, down 1% compared to year ago same period, the division's organic sales increased 3% versus a year ago period with growth in both Hair Care and Skin & Personal Care. The Beauty segment's Earnings from Continuing Operations before Income Taxes (EBIT) totaled $714 million, down 8% on a y-o-y basis.
For Q2 FY17, the Company's Grooming segment reported net sales of $1.79 billion, down 1% compared to Q2 FY16. The segment's organic sales increased grew 1% due to innovation-driven volume growth in both Shave Care and Appliances. The Grooming segment's EBIT grew 6% on a y-o-y basis to $614 million.
P&G's Health Care segment's net sales registered a 5% growth on a y-o-y basis to $2.07 billion. The segment's organic sales increased 7% behind higher organic volume in both Oral Care and Personal Health Care. The Health Care segment's EBIT totaled $608 million, up 8% on a y-o-y basis.
The Company's Fabric and Home Care segment reported net sales of $5.27 billion, down 1% on a y-o-y basis, while its organic sales edged up 1% versus year ago driven by higher volume from innovation and marketing investments in Fabric Care along with increased pricing in Home Care. The Fabric and Home Care segment's EBIT declined 4% on a y-o-y basis to $1.13 billion.
P&G's Baby, Feminine and Family Care segment reported net sales of $4.65 billion in Q2 FY17, down by 1%, while its organic sales increased 1%. Baby care volume increased behind product innovation, increased marketing support and market growth. Feminine Care and Family Care organic volume growth was driven by product innovation. Organic sales increased low single digits in Feminine Care and mid-single digits in Family Care while decreasing low single digits in Baby Care due to increased promotional investments. The Baby, Feminine and Family Care segment's EBIT was reported at $1.04 billion for Q2 FY17.
Cash Flow & Balance Sheet
P&G's operating cash flow was $3.0 billion for Q2 FY17. Adjusted free cash flow productivity was 82%. P&G's cash and cash equivalents totaled $7.1 billion at the end of Q2 FY17 versus $6.8 billion at the end of Q2 FY16. The Company returned $12.7 billion to shareholders, $1.8 billion in dividends, $1.5 billion in share repurchase, and $9.4 billion in share exchanges with the Beauty transaction. P&G has paid a dividend for 126 consecutive years, and have increased dividend for 60 consecutive years.
FY17 Guidance
P&G said it is raising its guidance for organic sales growth from approximately 2% to a range of 2% to 3% for FY17. The Company is expecting the combined headwinds of foreign exchange and minor brand divestitures to reduce sales growth by two to three percentage points. The Company maintained its expectation for core earnings per share growth of mid-single digits versus FY16 core EPS of $3.67.
Stock Performance
At the close of trading session on January 25, 2017, Procter & Gamble's stock price slightly fell 0.80% to end the day at $87.16. A total volume of 8.08 million shares were exchanged during the session. The Company's share price has gained 14.14% in the past twelve months and 4.48% on YTD basis. The stock currently has a market cap of $225.90 billion. The Company's shares are trading at a PE ratio of 24.66 and have a dividend yield of 3.07%.
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