Procter & Gamble (PG $72.00 +1.58) reported second quarter earnings of $1.22 per share, $0.11 better than the Capital IQ consensus of $1.11, while revenues rose 2.0% year/year to $22.18 bln vs the $21.92 bln consensus, including a negative one percent impact from FX. Organic sales increased three percent for the quarter, at the top end of the guidance range. Organic sales growth was broad-based, with all business segments increasing by two percent or more versus the prior year. Core gross margin increased 110 basis points due to the impact of higher pricing and manufacturing cost savings, partially offset by unfavorable geographic and product mix. The co delivered broad-based organic sales growth, with all business segments increasing organic sales by two percent or more versus the prior year. P&G held or grew market share in businesses representing nearly 50 percent of sales in the October - December quarter, as measured on a constant currency value basis. In the U.S. market, P&G held or grew value share in businesses representing nearly 60 percent of sales. Co issues guidance for Q3, sees EPS of $0.91-0.97, excluding non-recurring items, vs. $0.95 Capital IQ Consensus Estimate; sees Q3 revs +3-4% YoY (organic +3-4%) to ~$20.80-21.0 billion versus the $20.62 billion consensus Estimate. Co issues upside guidance for FY13, raises EPS to $3.97-4.07, excluding non-recurring items, from $3.80-4.00 vs. $3.97 Capital IQ Consensus Estimate; raises FY13 revs to +1-2% to ~$84.52-85.35 vs. $84.29 bln Capital IQ Consensus Estimate (organic sales growth raised to +3-4% from +2-4%). The co also increased its outlook for share repurchase to $5 to $6 billion, up from a prior range of $4 to $6 billion.
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