Consumer products behemoth Procter & Gamble (NYSE:PG) will be announcing earnings results this Thursday morning. Here’s what to look for.
Procter & Gamble missed analysts’ revenue expectations last quarter, reporting revenues of $21.2 billion, up 1.5% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ gross margin estimates but full-year EPS guidance meeting analysts’ expectations.
Is Procter & Gamble a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Procter & Gamble’s revenue to grow 2% year on year, slowing from the 3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Procter & Gamble has missed Wall Street’s revenue estimates multiple 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. Conagra’s revenues decreased 1.4% year on year, meeting analysts’ expectations, and General Mills reported a revenue decline of 2.8%, topping estimates by 0.9%. Conagra traded down 6.6% following the results while General Mills was also down 1.7%.
Read our full analysis of Conagra’s results here and General Mills’s results here.
Investors in the consumer staples segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Procter & Gamble is up 8.5% during the same time and is heading into earnings with an average analyst price target of $162.13 (compared to the current share price of $158.43).
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