Proctor & Gamble Co. (NYSE: PG) is among the Dow Jones Industrial Average components reporting its third quarter earnings this week. While its report is not due until Friday morning, many investors have to be trying to figure out how they will be judging P&G in this most recent quarter, and in the quarters ahead. P&G of course has to deal with a strong dollar that will be reducing its earnings and revenues, but it is also in a giant restructuring, which may be far from over.
The consensus estimates from Thomson Reuters call for $0.95 in earnings per share (EPS) on $17.17 billion in revenue. The same period from the previous year had $0.99 in EPS on $20.79 billion in revenue.
This stock is down over 15% this year, partly because a very large 65% of the company’s sales are directed to foreign customers. P&G is a solid consumer staples stock, especially for conservative investors to consider. The company sells lots of run-of-the-mill household items that are essential for everyday life, and it is not content to stand pat on its laurels.
The company actually is innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors years of steady growth and dividends. While currency headwinds have weighed on recent earnings and projections, the dollar may be topping out this fall, and that would bode well for the future.
Ahead of earnings, a few analysts weighed in on P&G:
- JPMorgan has an Overweight rating but lowered its price target to $88 from $92.
- Canaccord Genuity reiterated a Hold rating.
- Barclays reiterated a Hold rating but lowered its price target to $75 from $84.
So far in 2015, P&G has underperformed the market, with the stock down 16.6% year to date, while over the past 52 weeks the stock is down only 9.5%.
Shares of P&G were last seen trading at $75.50, with a consensus analyst price target of $81.29 and a 52-week trading range of $65.02 to $93.89.
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