Procter & Gamble Company
) recently reduced its third quarter and fiscal 2013 earnings
expectations following headwinds from Venezuela's currency
The consumer giant lowered its previously provided fiscal 2013
core earnings guidance by 3 cents from a range of $3.97 - $4.07
to $3.94 - $4.04 to reflect the impact of the Venezuelan
government's recently announced plan to devalue its currency. In
addition, P&G expects to record $200 million-$275 million (6
cents to 7 cents per share) in one-time charges from revaluation
of its local balance sheet at the new exchange rate.
In the third quarter, the company expects to earn 90 cents to
96 cents, down from prior expectations of 91 cents to 97 cents,
following the Venezuelan move.
P&G, which reported excellent second quarter fiscal 2013
results last month, maintained its sales outlook for fiscal 2013
as well as the third quarter, which was announced with its second
Organic sales are expected to grow in a range of 3% to 4%. Net
revenue is expected to rise between 1% and 2%. For the third
quarter, the company expects both net and organic revenues to
range between 3% and 4%.
Fiscal 2012 was a tough year for P&G and the company plans
to implement some meaningful changes to re-accelerate its top and
bottom-line growth in keeping with its peer companies.
P&G plans to improve results in developed markets while
maintaining momentum in the developing nations. The company is
focusing resources on the 40 largest and most profitable
businesses, most of which are in developed markets. These
businesses account for about 50% of sales and 70% of operating
profit. The company is also focusing on driving its 20 biggest
innovations like Tide Pods, Always Radiance, Bounty Trap &
Lock and Bounty Unstoppables in more markets in fiscal 2013.
Moreover, the company is concentrating on its 10 most important
In addition, the company has implemented costs savings and
productivity improvement initiatives in order to improve margins.
All these efforts are bearing fruit as evident from 2
back-to-back solid quarterly results in the first half of fiscal
P&G carries a Zacks Rank #2 (Buy) following its solid
second quarter results, which beat both the company as well as
Zacks' expectations. Other consumer staples companies which are
currently worth considering include
ConAgra Foods, Inc.
) - Zacks Rank #1 (Strong Buy),
) - Zacks Rank #2 (Buy) and
Church & Dwight Co. Inc.
) - Zacks Rank #2 (Buy).
CONAGRA FOODS (CAG): Free Stock Analysis
CHURCH & DWIGHT (CHD): Free Stock Analysis
KELLOGG CO (K): Free Stock Analysis Report
PROCTER & GAMBL (PG): Free Stock Analysis
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