P&G raises forecast after earnings top expectations, fueled by 8% jump in sales

Procter & Gamble is expected to announce its fiscal second-quarter earnings before the bell Wednesday.

Here’s what Wall Street analysts surveyed by Refinitiv are expecting:

• Earnings per share: $1.51 expected
• Revenue: $19.27 billion expected

In the company’s fiscal first quarter, it reported net sales growth of 9%, pushing its quarterly revenue to $19.32 billion. Its business spans a wide variety of categories that have been lifted by the coronavirus pandemic’s at-home trends, including laundry care, cleaning supplies and toilet paper. Analysts are projecting similar sales growth for P&G’s second quarter.

As of October, the Tide owner was forecasting sales growth of 3% to 4% during fiscal 2021. Company executives predicted that demand for its products would be stronger in the first half of the fiscal year and normalize in the latter half.

P&G is not the only company that will likely see its sales growth slow as pandemic trends fade. In recent weeks, analysts have been downgrading the stocks of Conagra Brands, Kellogg and other consumer packaged goods companies, citing concerns about the sustainability of at-home consumption behavior.

In the face of lagging organic growth, P&G may turn to mergers and acquisitions to bolster its top line. Its most recent deal, a proposed merger with razor-maker Billie, was supposed to help lift sales of its shaving business, but the two companies called off the agreement in January after the U.S. Federal Trade Commission filed a complaint to stop it.

Shares of P&G have risen 5% over the last year, giving the company a market value of $330 billion.

This story is developing. Please check back for updates.