Procter & Gamble (NYSE: PG) reported Q2 EPS of $1.64, $0.13 better than the analyst estimate of $1.51. Revenue for the quarter came in at $19.7 billion versus the consensus estimate of $19.27 billion.Net Sales +8%; Organic Sales +8%;Diluted Net EPS $1.47, +4% vs. prior year; Core EPS $1.64, +15% vs. prior yearRAISES SALES, EARNINGS, ADJUSTED FREE CASH FLOW PRODUCTIVITY AND CASH RETURN GUIDANCE

“We delivered another strong quarter of results across all key measures – top line, bottom line and cash,” said David Taylor, Chairman, President and Chief Executive Officer. “We remain focused on executing our strategies of superiority, productivity, constructive disruption and improving P&G’s organization and culture. These strategies enabled us to build strong business momentum before the COVID crisis, accelerated our progress in calendar year 2020 and remain the right strategies to deliver balanced growth and value creation over the long term.”

Fiscal Year 2021 Guidance

P&G raised its outlook for fiscal 2021 all-in sales growth from a range of three to four percent to a range of five to six percent versus the prior fiscal year. The Company raised its outlook for organic sales growth from a range of four to five percent to a range of five to six percent. Foreign exchange is now expected to be roughly neutral to sales growth for the fiscal year.

The Company said it now expects fiscal 2021 GAAP diluted net earnings per share growth in the range of eight to ten percent versus fiscal 2020 GAAP EPS of $4.96. GAAP EPS guidance includes non-core charges for early debt retirement of $0.16 per share in fiscal 2021. P&G raised guidance for core earnings per share growth from a range of five to eight percent to a range of eight to ten percent versus fiscal 2020 core EPS of $5.12. The Company said its current outlook includes headwinds of approximately $100 million after-tax from foreign exchange impacts and $100 million after-tax from higher freight costs. The outlook also includes an estimated $150 million after tax headwind for the combined impacts of higher interest expense and lower interest income. The Company now expects commodity cost impact to be neutral versus the previous fiscal year.

The Company is not able to reconcile its forward-looking non-GAAP cash flow measure without unreasonable efforts because the Company cannot predict the timing and amounts of discrete cash items, such as acquisitions, divestitures, or impairments, which could significantly impact GAAP results. The Company now estimates fiscal 2021 adjusted free cash flow productivity to be in the range of 95% to 100%.

P&G expects to pay approximately $8 billion in dividends in fiscal 2021. The Company increased its outlook for common stock repurchase from a range of $7 billion to $9 billion to up to $10 billion in fiscal 2021. Combined, P&G now plans to return around $18 billion of cash to shareowners in this fiscal year.

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