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Procter & Gamble Raises 2021 Outlook: What Investors Need To Know

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Procter & Gamble Raises 2021 Outlook: What Investors Need To Know

Procter & Gamble Co (NYSE: PG) on Wednesday raised its fiscal 2021 outlook for the second consecutive quarter and posted earnings results that topped expectations.

P&G said its fiscal second-quarter revenue rose by over 8%, fueled by pandemic spending habits.

The Wall Street Journal projected revenue of $19.2 billion, which P&G beat by $500 million.

P&G, which is the parent company of brands such as Tide, Pampers and Bounty, is now projecting that adjusted earnings will rise 8%-10%.

Earnings per share also beat expectations by 13 cents per share, coming in at an adjusted $1.64 against expectations of $1.51.

“We are very well positioned for a post-COVID environment,” P&G CFO and COO Jon Moeller said on CNBC’s “Squawk Box.” 

Moeller appeared on CNBC Wednesday morning to discuss how the pandemic has fueled P&G's performance and to speak on its raised 2021 fiscal outlook.

“It’s a combination of products that were planned and a quick response to real, emerging needs,” Moeller said.

P&G’s sales by product breakdown also shows how consumers are spending their money during the pandemic, with the “Home Care” segment, which includes Comet cleaning products, seeing growth of 30% as more consumers cleaned homes they have been in for months.

The coronavirus vaccine poses questions about whether or not P&G will be able to sustain this high level of growth throughout the 2021 calendar year, but Moeller said that while demand will be weakened, the company is expecting “some very strong headwinds” to disappear such as supply chain constraints.

P&G now expects to buy back up to $10 billion of its own stock this year, up from a previous estimate of $7-$9 billion.

 

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