--- title: "Dow 30 Earnings: Procter & Gamble Second Quarter Fiscal 2018" description: dow 30, second-quarter earnings, Procter & Gamble, revenues of $17.395 billion, organic sales and volume were up, productivity and margin improvements image: https://investor.valueline.com/hubfs/VL%20Blog%20Images/iStock-186324219.jpg --- [![The Value Line Blog](https://investor.valueline.com/hubfs/VL%20Blog%20Images/vl_blog_header.png)](https://investor.valueline.com/blog) [Stock Highlights](https://investor.valueline.com/blog/topic/stock-highlights) # Dow 30 Earnings: Procter & Gamble Second Quarter Fiscal 2018 January 23, 2018 Household goods giant **Procter & Gamble **([PG ](https://research.valueline.com/research#sec=company&sym=PG)- [Free P&G Stock Report](https://research.valueline.com/api/report?documentID=2185-VL_20171222_VLIS_PG_2211_01-14B1CUFQPLGJJF93UL53B02HF9&symbol=PG)) issued second-quarter fiscal 2018 results this morning (years end June 30th). Although the manufacturer posted top- and bottom-line improvements in the recent quarter, investors seem somewhat hesitant, and the stock was down more than 2% in early morning trading.  Revenues came in at $17.395 billion for the December period, 3% above the year-ago tally and slightly over our estimate ($17.35 billion). Organic sales and volume were up, and the company experienced a lift from a more favorable foreign exchange environment. Moreover, a better product mix, namely strong gains from higher-priced and higher-margin offerings helped drive the top line over the last few months. Core earnings grew 10%, to $1.19 a share (handily topping our $1.10 estimate). Productivity and margin improvements and reduced operating costs helped boost profits. Plus, recent U.S. tax reform added a nickel-per-share benefit to the bottom line. GAAP earnings, however, came in flat for the December period. Even though the lower corporate tax rate ought to benefit the manufacturer in coming quarters, this will likely be somewhat offset by the repatriation tax charge and deferred tax benefits. In mid-December, P&G appointed Nelson Peltz to its board. Last summer, the head of Trian Fund Management sought a seat at the table, claiming that the household goods maker wasn't doing enough to boost sagging revenues or to promote shareholder values. PG conceded that Mr. Peltz won the proxy fight by a small margin and welcomed him aboard last month. Management also reiterated its growth strategies, including portfolio improvements and establishing a more productive and efficient operation. And the company ought to focus on implementing these measures and delivering stronger results in the near term. To wit, ongoing restructuring and productivity improvements, as well as careful cost controls should drive profits in the coming quarters. P&G's streamlining moves, specifically last year's divestitures, helped reduce overhead costs and made its operations more efficient. And we figure it will continue to strengthen the supply chain to offset higher commodity or input costs. Meanwhile, the company has also been investing in its brands and product lines. It will probably concentrate on making superior offerings, and will rely on better packaging, brand communication, innovative new products, and retail execution to gain market share. Plus, P&G has been growing its digital footprint, and will likely continue to ramp up its e-commerce efforts. For the full year, we think sales will eke out a 2% gain, coming in at $66.5 billion. But we have added a dime to our fiscal 2018 earnings-per-share estimate, and now look for the bottom line to expand 10%, to $4.30. **About The Company:**[The Procter & Gamble Company](http://www.valueline.com/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=9552) makes detergents, soaps, toiletries, foods, paper, & industrial products. Brands include: *Head & Shoulders, Olay, Pantene, SK-II, Wella, Fusion, Gillette, Mach 3, Presobarba, Crest, Oral-B, Vicks, Ariel, Dawn, Downy, Febreze, Gain, Tide, Always, Bounty, Charmin*, and *Pampers*. — Orly Seidman At the time of this article’s writing, the author did not have positions in any of the companies mentioned. [![Register now for our free One Stock to Buy webinar](https://no-cache.hubspot.com/cta/default/2532383/5a80130b-f0ce-4bd8-acbd-f077f2232ec5.png)](https://cta-redirect.hubspot.com/cta/redirect/2532383/5a80130b-f0ce-4bd8-acbd-f077f2232ec5) ### Popular Posts Search Search Blog ### Topics - [Investing 101 (2)](https://investor.valueline.com/blog/topic/investing-101) - [Market Commentary (37)](https://investor.valueline.com/blog/topic/market-commentary) - [Stock Highlights (390)](https://investor.valueline.com/blog/topic/stock-highlights) - [Stock Market Today (2071)](https://investor.valueline.com/blog/topic/stock-market-today) Copyright 2026 Value Line, Inc. All Rights Reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. VALUE LINE IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN OR ANY DAMAGES OR LOSSES ARISING FROM ANY USE OF THE INFORMATION CONTAINED HEREIN. This blog is strictly for subscriber's own, non-commercial, internal use. No part of it may be reproduced, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product. Officers, directors, or employees of Value Line, Inc. and its affiliates and subsidiaries, and EULAV Asset Management, may own stocks that are featured in this email. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice. Value Line, the Value Line logo, The Most Trusted Name in Investment Research, “Smart research. Smarter investing.”, The Value Line Investment Survey, Timeliness, and Safety are trademarks or registered trademarks of Value Line, Inc. and/or its affiliates in the United States and other countries.