The Procter & Gamble Company (PG), headquartered in Cincinnati, Ohio, provides branded consumer packaged goods. Valued at $397.54 billion by market cap, the company’s product portfolio comprises conditioners, shampoos, blades and razors, toothbrushes, detergents, baby wipes, tissues, dish-washing liquids, etc., and markets them under brands including Always, Ambi Pur, Ariel, Bounty, Charmin, Crest, Dawn, Downy, Fairy, Febreze, Gain, Gillette, Head & Shoulders, Lenor, Olay, Oral-B, Pampers, Pantene, Tide, Vicks, and Whisper. The consumer goods major is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Tuesday, Jul. 30.
Ahead of the event, analysts expect PG to report a profit of $1.37 per share on a diluted basis, unchanged from the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For fiscal 2024, analysts expect PG to report EPS of $6.55, up 11% from $5.90 in fiscal 2023.
PG stock has underperformed the S&P 500’s ($SPX) 16.2% gains on a YTD basis, with shares up 14.3% during this period. However, it outshined the S&P 500 Cons Staples Sector SPDR’s (XLP) 8.7% gains over the same time frame.
PG’s overall performance can be attributed to its quarterly earnings, which beat Wall Street’s estimates, and its updated EPS growth forecast for fiscal 2024. On Apr. 19, PG reported its Q3 results. Its non-GAAP Core EPS rose 11% year-over-year to $1.52, beating the consensus estimates of $1.42. The company’s revenue increased marginally year-over-year to $20.20 billion, falling short of Wall Street estimates of $20.48 billion. PG maintained its sales growth guidance for fiscal 2024 to be in the range of 2% to 4% versus the prior year. Moreover, it maintained its organic sales growth outlook in the range of 4% to 5%.
The company raised its fiscal 2024 core EPS growth outlook from a range of 8% to 9% to a range of 10% to 11% versus fiscal 2023 EPS. PG shares closed up marginally on the day the results were released and have been on an uptrend since then.
Analysts’ consensus opinion on PG stock is bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, 14 advise a “Strong Buy” rating, two have a “Moderate Buy” rating, and six recommend a “Hold.” The average analyst price target for PG is $173, indicating a 2.7% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
