Procter & Gamble Q2 Earnings Plunge on Charges; Adj Net Beats View; Forecast Slashed (PG)

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Consumer products maker The Procter & Gamble Company ( PG ) on Friday posted a sharp decline in fiscal second quarter earnings, hurt by one-time charges, and lowered its full-year forecast.

The Cincinnati-based company reported fiscal second quarter net income of $1.69 billion, or 57 cents per share, down from $3.33 billion, or $1.11 per share, in the year-ago period. Excluding special items, adjusted profit was $1.10 per share.

On average, Wall Street analysts expected a smaller profit of $1.08 per share, albeit on higher revenue of $22.19 billion.

Looking ahead, P&G forecast third quarter earnings of 91 to 97 cents per share, which would badly miss Wall Street's view for $1.06 per share. For the full fiscal year 2012, the company lowered its earnings guidance to a range of $4 to $4.10 per share, down from a prior outlook of $4.15 to $4.33. Analysts are looking for $4.16 per share for the year.

Procter & Gamble shares fell 45 cents, or -0.7%, in premarket trading Friday.

The Bottom Line
Shares of Procter & Gamble ( PG ) have a 3.24% dividend yield, based on Friday's closing stock price of $64.80. The stock has technical support in the $62-$64 price area. If the shares can firm up, we see overhead resistance around the $68-$70 price level.

The Procter & Gamble Company ( PG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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