Cincinnati, Ohio-based The Procter & Gamble Company (PG) is the world’s largest consumer packaged goods company. It operates through Beauty, Grooming, Health Care, Fabric & Home Care, and Baby, Feminine & Family Care segments. With a market cap of $394.8 billion, Procter & Gamble's operations span 180+ countries in the Americas, Indo-Pacific, and EMEA regions. The household & personal products giant is set to release its Q2 results before the market opens on Wednesday, Jan. 22.
Ahead of the event, analysts expect Procter & Gamble to report a profit of $1.88 per share, up 2.2% from $1.84 per share reported in the year-ago quarter. Moreover, the company consistently surpassed Wall Street’s earnings estimate in each of its past four quarters. Its adjusted EPS for the last reported quarter grew by 5.5% year-over-year to $1.93, exceeding analysts’ estimates by 1.6%.
For fiscal 2025, analysts expect Procter & Gamble to report an adjusted EPS of $6.93, up 5.2% from $6.59 in fiscal 2024. While in fiscal 2026, its adjusted EPS is expected to grow 6.6% year-over-year to $7.39.
P&G has gained 11.6% over the past 52 weeks, lagging behind the S&P 500 Index’s ($SPX) 23.7% returns but outperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 7.6% gains during the same time frame.
Shares of Procter & Gamble experienced a marginal dip after the release of its mixed Q1 earnings on Oct. 18. Although its organic sales (excluding forex impact) increased nearly 2%, its overall net sales declined 61 basis points compared to the year-ago quarter to $21.7 billion. Meanwhile, its non-GAAP earnings observed modest growth due to favorable price and productivity savings, but the company hasn’t observed any volume growth.
Furthermore, P&G reported a 12.3% year-over-year drop in cash operating flows from operating activities, which has raised investors’ concerns.
Nevertheless, analysts remain optimistic about the stock’s long-term prospects, it has an overall consensus “Moderate Buy” rating. Out of the 27 analysts covering the stock, 15 recommend “Strong Buy,” two advise “Moderate Buy,” and 10 suggest a “Hold” rating. Its mean price target of $182.50 indicates a 10% upside potential to current price levels.
