What to Look For in Procter & Gamble’s Report on Tuesday

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Procter & Gamble Co. (NYSE: PG) is set to report its most recent quarterly results before the markets open on Tuesday. The consensus estimates are calling for $1.05 in earnings per share (EPS) and $16.86 billion in revenue. The fiscal fourth quarter of last year reportedly had $0.94 in EPS and $16.5 billion in revenue.

In the previous quarter, the company issued guidance for the fiscal 2019 full year. It expects to see all-in sales growth in the range of in-line to up 1% compared with the previous fiscal year, while core EPS are expected to increase 3% to 8% year over year. Consensus estimates call for $4.45 in EPS and $67.2 billion in revenue for the year.

As for the fiscal third quarter, net sales increased 1% from the prior year. Unfavorable foreign exchange had a 5% impact on sales for the quarter. Excluding the effects of foreign exchange, acquisitions and divestitures, organic sales increased 5%, driven by a 2% increase in organic shipment volume.

Also at that time, its segments were reported as follows:

  • Beauty net sales increased 4% year over year to $3.06 billion.
  • Grooming net sales decreased 8% to $1.42 billion.
  • Health Care net sales increased 9% to $2.12 billion.
  • Fabric & Home Care net sales increased 2% to $5.38 billion.
  • Baby, Feminine & Family Care net sales decreased 2% to $4.36 billion.

Excluding Monday’s move, Procter & Gamble had outperformed the broad markets, with its stock up about 25% year to date. In the past 52 weeks, the stock was up 44%.

A few analysts weighed in on Procter & Gamble ahead of the report:

  • Scotiabank has a Buy rating.
  • Goldman Sachs has a Buy rating and a $125 price target.
  • Deutsche Bank’s Hold rating comes with a $109 price target.
  • Credit Suisse rates it as Hold with a $100 target price.
  • Barclays has an Overweight rating and a $112 price target.

Shares of Procter & Gamble traded up about 1% to $116.00 on Monday, in a 52-week range of $78.49 to $116.52. The consensus price target is $109.85.

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