Why Is P&G (PG) Up 0.6% Since Last Earnings Report?

Core Viewpoint - Procter & Gamble reported strong second-quarter fiscal 2025 results, with sales and earnings exceeding estimates and showing year-over-year improvement [2][3]. Financial Performance - Core earnings per share (EPS) reached $1.88, a 2$1.86 [2]. - Net sales totaled $21.9 billion, reflecting a 2$21.6 billion [3]. - Organic revenue growth was 3% year over year, driven by a 2% increase in organic volume [4]. Segment Performance - The Baby, Feminine & Family Care segment led sales growth with a 3% year-over-year improvement, followed by 2% gains in Health Care and Fabric & Home Care segments [5]. Margin Analysis - Core gross margin declined by 30 basis points to 52.4%, impacted by unfavorable mix and commodity costs [6]. - Core operating margin contracted 80 basis points to 26.2%, despite gross productivity savings contributing positively [8]. Cash Flow and Shareholder Returns - The company ended the quarter with cash and cash equivalents of $10.2 billion and generated an operating cash flow of$4.8 billion [9]. - Procter & Gamble returned over $4.9 billion to shareholders, including$2.4 billion in dividends and $2.5 billion in share buybacks [10]. Guidance and Outlook - For fiscal 2025, the company anticipates all-in sales growth of 2-4$6.91-$7.05 [12]. - The company expects a core effective tax rate of 20-21$10 billion in dividends for fiscal 2025 [14]. Market Position - Procter & Gamble holds a Zacks Rank 3 (Hold), indicating an expectation of in-line returns in the coming months [17].