Stock Story -
Consumer products behemoth Proctor & Gamble (NYSE:PG) will be reporting earnings tomorrow morning. Here’s what investors should know.
Procter & Gamble met analysts’ revenue expectations last quarter, reporting revenues of $20.53 billion, flat year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ earnings estimates but a miss of analysts’ gross margin estimates.
Is Procter & Gamble a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting Procter & Gamble’s revenue to be flat year on year at $21.98 billion, slowing from the 6.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.90 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 16 analysts). Procter & Gamble has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Procter & Gamble’s peers in the consumer staples segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lamb Weston posted flat year-on-year revenue, beating analysts’ expectations by 6.5%, and General Mills (NYSE:GIS) reported a revenue decline of 1.2%, in line with consensus estimates. Lamb Weston traded up 2.6% following the results while General Mills’s stock price was unchanged.
Read the full analysis of Lamb Weston’s and General Mills’s results on StockStory.
Investors in the consumer staples segment have had steady hands going into earnings, with share prices flat over the last month. Procter & Gamble’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $175.60 (compared to the current share price of $172.30).