Post-Earnings Insight - Procter and Gamble

LONDON, February 19, 2015 /PRNewswire/ --

Editor Note: For more information about this release, please scroll to bottom.

Investor-Edge.com has issued free post-earnings coverage on The Procter & Gamble Co. (NYSE: PG). On January 27, 2015, the company reported its Q2 FY15 results (period ended December 31, 2014). Click on http://get.Investor-Edge.com/pdf/?c=Procter%20and%20Gamble&d=19-Feb-2015&s=PG to read our free earnings review on The Procter & Gamble Company (P&G). During Q2 FY15, the company's core earnings per share (EPS) on a currency-neutral basis grew 6% Y-o-Y and organic sales improved 2% Y-o-Y. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Procter%20and%20Gamble&d=19-Feb-2015&s=PG

Earnings Overview 

During Q2 FY15, P&G's net sales were $20.16 billion compared to $21.10 billion in Q2 FY14. The company's net sales in Q2 FY15 missed Bloomberg analysts' expectations of $20.67 billion. In Q2 FY15, P&G's gross margin fell to 50.0% from 50.4% in Q2 FY14. P&G reported organic sales growth in four of five reporting segments, while, organic volume was unchanged versus Q2 FY14. Free research on PG can be downloaded in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Procter%20and%20Gamble&d=19-Feb-2015&s=PG

For Q2 FY15, P&G's GAAP diluted net EPS from continuing operations came in at $1.02 compared to $1.12 in Q2 FY14. Additionally, the company's non-GAAP diluted net EPS from continuing operations for Q2 FY15 was $1.06 compared with $1.15 in Q2 FY14. Moreover, net earnings attributable to P&G stood at $2.37 billion, or $0.82 per diluted share, in Q2 FY15, compared to $3.43 billion, or $1.18 per diluted share, in Q2 FY14. Bloomberg analysts' expected net earnings attributable to P&G of $3.38 billion, or $1.13 per diluted share, for Q2 FY15.

Chairman, President, and CEO at P&G, A.G. Lafley, stated that Q2 FY15 was a challenging one with unprecedented currency devaluations. Virtually every currency in the world devalued versus the U.S. dollar, with the Russian Ruble leading the way, he added.

During Q2 FY15, P&G generated operating cash flow of $3.4 billion and returned $3.7 billion in cash to shareholders, including $1.8 billion as dividends and $1.9 billion in from of common stock repurchases. Additionally, in H1 FY15, the company has returned approximately $7.9 billion to shareholders with $3.6 billion in dividends and $4.3 billion in stock repurchases. Sign up and read the free analyst's notes on PG at:

http://get.Investor-Edge.com/pdf/?c=Procter%20and%20Gamble&d=19-Feb-2015&s=PG

The company maintained its organic sales growth guidance for FY15 of low-to-mid single digit range with a lower net sales growth in the range of (3)% to (4)%, including a negative five point headwind from foreign exchange and a one point impact from minor brand divestitures. For FY15, P&G also maintained its outlook for double-digits growth in currency-neutral core EPS and anticipates core EPS to be in-line or down low-single digits versus FY14's core EPS of $4.09. Additionally, the company expects all-in GAAP diluted net EPS growth in FY15 to be down in the mid-teens range from FY14. The outlook for the year will remain challenging, Mr. Lafley said. He asserted that the company has and will continue to offset as much of this currency impact as it can through productivity driven cost savings. Visit Investor-Edge and access the latest research on PG at:

http://get.Investor-Edge.com/pdf/?c=Procter%20and%20Gamble&d=19-Feb-2015&s=PG

Stock Performance  

On the day of the earnings release, January 27, 2015, P&G's stock declined 3.45% ending the session at $86.49. Since then, the stock has witnessed a mixed momentum. On the last close, Wednesday, February 18, 2015, the company's shares finished 0.90% higher at $86.26. The company's shares vacillated between $85.52 and $86.39 during the session. A total of 8.13 million shares were traded which was above its three months average volume of 7.50 million shares. Over the last one month and previous three months, P&G's shares have fallen by 5.47% and 1.92%, respectively. However, the stock has gained 10.63% over the past one year. Shares in the company closed above their 200-day moving average of $84.49. Furthermore, the stock traded at a PE ratio of 21.08.

Sneak Peek to Corporate Insider Trading  

In the last one month, there were eight corporate insider transactions made by four individuals. A total of 163,558 shares of the company were bought at an average price of $58.88 per share and for a total value of $9.63 million between January 28, 2015 and February 13, 2015. During the same time period, 168,816 shares in total were disposed at an average price of $86.10 per share and for a total value of $14.54 million. The following are a few of the transactions made in the aforementioned period: Linda W. Clement-Holmes, Chief Information Officer at P&G, bought 47,582 shares at a price of $63.05 and sold 50,211 shares at an average price of $85.61 per share. On January 28, 2014, A.G. Lafley, purchased 60,000 shares at a price of $60.50 per share and disposed an equal number of shares at a price of $86.06 per share. On the same day, Marc S. Pritchard, Chief Brand Officer at P&G, bought 55,976 shares at a price of $53.60 and sold an equal number of shares at a price of $86.61 per share. Complimentary in-depth research on PG is available at:

http://get.Investor-Edge.com/pdf/?c=Procter%20and%20Gamble&d=19-Feb-2015&s=PG

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