Companies and Brands

What to Expect When Procter & Gamble Reports Friday Morning

Chris Lange

Published: October 18, 2018 1:00 pm

Last Updated: January 11, 2020 4:14 pm

Procter & Gamble Co. (NYSE: PG) is set to report its fiscal first-quarter financial results before the markets open on Friday. Thomson Reuters consensus estimates are calling for $1.09 in earnings per share (EPS) and $16.48 billion in revenue. In the same period of last year, the consumer goods maker said it had $1.09 in EPS and $16.65 billion in revenue.

In its most quarterly recent report, the company said that organic sales were up 1%, driven by a 3% increase in organic shipment volume. All-in volume increased 2%. Pricing reduced net sales by 2%, due primarily to increased merchandising investments.

In the past year, the company made important progress. Management said that it delivered strong volume and consumption growth, market share trends improvement, core EPS and cash generation results above going-in targets, albeit with organic sales slightly below target. However, this was only good enough to land it as the second-worst performing Dow Jones industrial average stock over the past year.

Procter & Gamble has underperformed the broad markets, with the stock down about 12% in the past 52 weeks. In just 2018 alone the stock is down 11%.

A few analysts weighed in on the stock prior to the earnings release:

• UBS has a Hold rating with an $82 price target.
• Merrill Lynch has a Neutral rating and an $89 price target.
• Atlantic Securities has an Overweight rating with a $94 target.
• Wells Fargo has a Hold rating with a $78 target price.
• Deutsche Bank has a Hold rating and an $85 price target.
• SunTrust has a Hold rating with an $80 target price.
• Morgan Stanley has a Hold rating with an $85 target.

Shares of Procter & Gamble were last seen trading at $80.76, in a 52-week range of $70.73 to $93.14 and with a consensus analyst price target of $83.83.