Procter & Gamble, the Cincinnati-based parent of brands including Charmin, Crest and Pampers, will report fiscal first-quarter earnings early Wednesday.
Here’s what to expect.
Earnings
Profit: P&G
PG,
is expected to report per-share earnings of $1.72, according to analysts polled by FactSet, That’s up from $1.57 in the year-earlier period.
Estimize, which crowdsources estimates from buy and sell-side analysts, academics, students and others, is expecting EPS of $1.74.
Revenue: FactSet analysts are expecting revenue of $21.580 billion, up from $20.612 billion a year ago.
Estimize is expecting revenue to come to $21.761 billion.
Stock movement: P&G’s stock has fallen 4% in the year to date, while the S&P 500
SPX
has gained 13.7%. But the stock is up 14% over the last 12 months, while the S&P 500 has gained 18.7%.
Of the 18 analysts that offer ratings for the stock on FactSet, 10 rate it a buy, seven rate it as hold and one has an underweight, or sell, rating.
What else to watch for
Investors will be eager to see whether P&G has raised prices again, as it has for the past few quarters in a high inflation environment.
On its fiscal fourth-quarter call with analysts, Chief Executive Jon Moeller signaled a strong likelihood it would do so.
“Pricing isn’t going away in absolute,” Moeller said, according to a FactSet transcript. “It is linked to innovation and we have a very strong innovation pipeline. If you look back historically, pricing has been a positive contributor to our top-line growth for something like 48 out of the 51 last quarters and again as we strengthen our innovation program even further, that will provide opportunities to continue to benefit from modest pricing.”
They will also wait to see if the company sticks with guidance offered then, given developments since then that include unfavorable forex moves, rising oil costs, a China recovery that has proved more volatile than expected and the recent hostilities in the Middle East.
“We continue to believe that the base case heading into this week is for the company to maintain their $6.25-$6.43 EPS guidance range, particularly as scanner data would suggest that underlying performance in both the U.S. and Europe remains solid and could more than offset these pressures,” UBS analysts wrote in a note to clients on Monday.
UBS has a buy rating on the stock.
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