Shares of Procter & Gamble Co. PG dropped 1.2% in premarket trading Thursday, after the branded consumer goods company reported fiscal second-quarter profit that matched expectations, but volume that fell more than some analysts had forecast. Net income fell to $3.93 billion, or $1.59 a share, from $4.22 billion, or $1.66 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.59 matched the FactSet consensus $1.59. Sales declined 0.9% to $20.77 billion, the first year-over-year decline since the quarter ended June 2017, but just above the FactSet consensus of $20.73 billion. Excluding the impact of foreign currency translation and acquisitions, organic sales rose 5%, as price increases of 10%, more than some analysts expected, helped offset a bigger-than-expected 6% decline in shipment volumes. For 2023, the company affirmed EPS growth outlook of flat to up 4%, but raised its sales outlook to down 1% to flat from down 3% to down 1%. The stock has rallied 12.3% over the past three months through Wednesday, while the SPDR Consumer Staples Select Sector ETF XLP has tacked on 5.7% and the S&P 500 SPX has gained 6.3%.
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