Procter & Gamble (PG) reported adjusted earnings of $1.66 a share for its fiscal second quarter. Analysts had expected the company to report earnings $1.65 a share.
Revenue of $21 billion also came in ahead of Wall Street projections $20.34 billion. Organic sales climbed 6% in the quarter.
For the fiscal second quarter a year ago, P&G reported earnings of $1.64 a share on sales of $19.75 billion.
The company also raised its sales guidance for fiscal 2022 to a range of 3% to 4% from previous guidance of 2% to 4%. And P&G raised its expectations of organic sales growth for the fiscal 2022 year to 4% to 5% from the previous guidance of 2% to 4%.
The company also noted that it has been able to raise priced to offset rising commodity costs without seeing resistance from consumers. P&G plans to raise prices on fabric-care products at the end of February and on some personal health brands in mid-April.
Consumers have so far reacted to price hikes better than in the past, Chief Financial Officer Andre Schulten said. That’s helped P&G cope with rising costs related to commodities, freight and foreign currency. The maker of Tide detergent and Downy fabric softener said its fiscal 2022 outlook now includes $2.8 billion in combined headwinds, up from $2.4 billion projected in November.
Which isn’t to say that P&G isn’t seeing inflation pressures. The company Consumers said its fiscal 2022 outlook now includes $2.8 billion in combined headwinds from higher commodity prices, hikes in shipping costs, and foreign exchange effects, up from $2.4 billion projected in November.
The stock closed up 3.6% today, January 19.