PROCTER & GAMBLE STOCK RISES ON EARNINGS REPORT

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Proctor & Gamble (PG)released their fiscal second quarter results today, reporting revenue andearnings that beat out analysts’ estimates. The company reported second quarter revenue of$22.2 billion compared to forecasts of $21.91 billion and core earnings pershare of $1.22, compared to analyst forecasts of $1.11 per share.  Revenue increased 6.95% from $20.74 billion in the previous quarter. Netincome increased 44.28% from $2.81 billion in the previous quarter.  Trading opened at $71.75 and quickly set a new 52 week highof $73.25.  This is good news for theworld’s largest consumer products manufacturer, maker of household productsincluding Tide and Pampers. 
According to WallStreet Cheat Sheet, “Our second quarter results were atthe high end of our expectations on the top-line and well ahead of forecast onoperating profit, earnings per share and cash flow,” said Chairman, President,and Chief Executive Officer, Bob McDonald. “Global market share trends improvedas we continued to implement our growth strategy and made very good progressagainst our productivity and cost savings goals. Our strong first half resultshave enabled us to raise our sales, earnings and share repurchase outlook forthe fiscal year, while we strengthen investments in our innovation andmarketing programs.”
Summary andGuidance from MarketWatch

• Organic sales increased three percent for the quarter, at the top end of theguidance range.
• Organic sales growth was broad-based, with all business segments increasing bytwo percent or more versus the prior year.
• Core net earnings per share increased by 12 percent to $1.22.
• Core gross margin increased 110 basis points due to the impact of higherpricing and manufacturing cost savings, partially offset by unfavorablegeographic and product mix. Reported gross margin, including non-corerestructuring charges, increased 80 basis points.
• Core and reported selling, general and administrative expenses (SG&A) as apercentage of net sales was unchanged, as enrollment reductions andproductivity savings were offset by higher pension and employee benefit costs.Non-core charges in SG&A were in line with the prior year level.
• Core operating profit increased seven percent. Reported operating profit,including non-core charges, increased 68 percent.
• Operating cash flow was $3.8 billion for the quarter. The Company repurchased$1.4 billion of shares during the quarter and returned $1.6 billion of cash toshareholders as dividends. 

P&Gis estimating net and organic sales growth in the range of three percent tofour percent for the January - March quarter. Foreign exchange is expected tobe neutral to sales growth. 
TheCompany expects March quarter core EPS in the range of $0.91 to $0.97, downthree percent to up three percent compared to prior year core EPS of $0.94. Onan all-in basis, P&G is forecasting earnings per share in the range of$0.90 to $0.96, an increase of 10 percent to 17 percent versus prior yeardiluted EPS of $0.82. Prior year all-in results included $0.13 of non-corecosts, primarily related to restructuring charges. Current year all-in EPSguidance includes non-core restructuring charges of $0.01 per share.