What to Expect From P&G Earnings

By Chris Lange Updated Apr 6, 5:50PM EDT · Published Oct 22, 2:05PM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

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.

ALSO READ: The Most Profitable Companies in the World

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.