Procter & Gamble (NYSE:PG) on Wednesday raised its outlook for the second consecutive quarter after its revenue rose 8%, fueled by higher demand for its cleaning products and shaving and styling products as the pandemic continues to guide consumer behavior.
The Tide manufacturer now expects sales growth of 5% to 6% in fiscal 2021, up from its prior outlook of 3% to 4% growth. It’s also forecasting that its adjusted earnings will rise 8% to 10%, up from the previous target of 5% to 8%.
P&G reported fiscal second-quarter net income of $3.85 billion, or $1.47 per share, up from $3.72 billion, or $1.41 per share, a year earlier.
Excluding items, the company earned $1.64 per share, beating the $1.51 per share expected by analysts.
Net sales rose 8% to $19.75 billion, topping expectations of $19.27 billion. Its organic sales, which strip out the impact of acquisitions, divestitures and foreign currency, also rose 8%.
In fiscal 2021, P&G is predicting foreign currency headwinds that will cost about $100 million after tax, as well as higher freight costs that will also cost $100 million after tax. The company also raised its outlook for its share buyback program from a range of $7 billion to $9 billion to up to $10 billion during the fiscal year.
Shares of the company dropped $1.35, or 1%, to $132.26.
