Earnings Preview: Procter & Gamble

Procter & Gamble Company (PG) is expected to report Q2 earnings with a conference call scheduled for Thursday, January 31 at 8:30 am ET.

Guidance

Analysts are expecting Q2 EPS of 97c on revenue of $21.25B. The consensus range for EPS is tight, at 96c to 98c, while the consensus range for revenue is $21.09B to $21.45B, according to First Call. In October, when P&G reported Q1 results, it said it expected Q2 EPS of 95c to 97c and a total sales increase of 6% to 8%. Earlier in January, P&G COO Bob McDonald said, "In the short term it is more likely for us to be on the selling side and that we slim down our portfolio," meaning investors will be looking for more color on possible divestitures, such as the company's plan to sell-off Folgers, which was reported by the Wall Street Journal on January 16. The Journal added that Pringles and Duracell were other brands that could possibly be sold.

Jim Cramer highlighted Procter & Gamble on his January 25 "Mad Money" show, saying he saw an opportunity in the company, which was trading as low as $63, in this volatile market. He noted that P&G has the best record of dividend increases on the Dow Jones Industrial Average.