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In its upcoming report, Procter & Gamble (PG) is predicted by Wall Street analysts to post quarterly earnings of $1.54 per share, reflecting an increase of 1.3% compared to the same period last year. Revenues are forecasted to be $20.34 billion, representing a year-over-year increase of 0.7%.The consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates ...

Core Viewpoint - Procter & Gamble (P&G) is expected to report year-over-year sales and earnings growth for the third quarter of fiscal 2025, with revenues estimated at $20.3 billion and earnings at $1.55 per share, reflecting a 0.7% and 2% increase respectively from the prior year [1][2]. Financial Performance - The Zacks Consensus Estimate for P&G's fiscal third-quarter revenues is $20.3 billion, indicating a 0.7% rise from the previous year [2]. - The consensus estimate for earnings per share is $1.55, which represents a 2% growth compared to the same quarter last year [2]. - P&G has a trailing four-quarter earnings surprise average of 3%, with a recent surprise of 1.08% [2]. Earnings Predictions - P&G has an Earnings ESP of -1.42% and a Zacks Rank of 3, suggesting that the model does not predict a definitive earnings beat this time [3][4]. - The company is expected to maintain organic sales growth of 3.2% year-over-year, driven by strong pricing strategies and favorable product mix [6]. Market Trends - P&G's organic sales growth is anticipated to be supported by robust performances across its segments, with Beauty, Health Care, and Baby, Feminine & Family Care segments expected to grow by 4%, Grooming by 3%, and Fabric & Home Care by 2% [6]. - The company continues to leverage its strong brand portfolio to assert its market leadership and drive organic sales growth [5]. Cost Management - P&G is actively implementing cost-saving initiatives and productivity enhancements to strengthen margins, with core gross margin expected to expand by 150 basis points year-over-year [7][8]. - Core SG&A expenses are projected to grow by 3.6% year-over-year, with an increase of 10 basis points as a percentage of sales [12]. Challenges - P&G faces challenges including market pressures in Greater China, geopolitical tensions, and currency volatility, which have notably affected consumer spending [9][10]. - The company has encountered brand-specific headwinds, particularly with its SK-II brand, and anticipates a volatile global environment affecting performance [11]. Stock Performance - P&G shares have increased by 3.3% over the past three months, underperforming the industry and Zacks Consumer Staples sector [13]. - The stock is currently trading at $166.39, close to its 52-week low, with a forward P/E multiple of 23.04X, higher than the industry average of 20.94X [16].

Core Insights - Procter & Gamble (PG) has maintained strong growth through a solid market position and a focus on productivity and cost-efficiency, but its current forward 12-month P/E ratio of 22.63X raises concerns about fair valuation compared to the industry average of 20.58X [1][4] - The company's price-to-sales (P/S) ratio stands at 4.41X, significantly above the industry's 2.34X, contributing to investor unease and a Value Score of F, indicating it may not be a strong value proposition at current levels [2][4] Valuation Comparison - PG's P/E ratio of 22.63X is higher than competitors like Clorox Company (20.27X), Albertsons Companies (9.87X), and Energizer (7.68X), suggesting that PG's valuation is out of step with its growth trajectory [4][5] - The stock's premium valuation indicates strong investor expectations for growth, yet it appears somewhat overvalued given its recent performance [5][6] Stock Performance - Over the past year, PG shares have increased by 4.9%, underperforming the broader industry's growth of 5.4%, but outperforming the Zacks Consumer Staples sector's growth of 0.4% and the S&P 500's decline of 2% [5][6] - PG's current share price of $163.75 reflects a 9.2% discount to its 52-week high of $180.43 and a 6.7% premium from its 52-week low of $153.52, indicating price stability and upward momentum [8] Challenges and Headwinds - PG faces macroeconomic pressures and geopolitical tensions, particularly in Greater China, where organic sales fell by 3% year over year in Q2 of fiscal 2025 [9][10] - The company is experiencing elevated SG&A expenses due to supply-chain disruptions and inflation, with a 30 basis point increase in the SG&A rate to 26% in Q2 of fiscal 2025 [11][12] Financial Guidance - For fiscal 2025, PG's management is guiding toward the lower end of projected revenue and earnings ranges due to persistent FX pressures and slower market growth [14] - The Zacks Consensus Estimate for PG's fiscal 2025 revenues and EPS implies year-over-year growth of 1.2% and 4.9%, respectively, while fiscal 2026 estimates indicate 3.1% and 6.1% growth [16] Strategic Initiatives - PG is pursuing productivity and cost-saving initiatives, targeting up to $1.5 billion in pre-tax gross savings in the cost of goods sold through a rolling three-year productivity master plan [21][22] - The company is focusing on market expansion and category leadership, leveraging its portfolio of essential products to drive consistent momentum across categories and geographies [19][20] Long-term Outlook - PG's extensive global footprint and diversified brand portfolio provide a solid foundation for long-term revenue stability, despite ongoing geopolitical tensions and market-specific challenges [25][26] - The company's strategic reinvestment, cost discipline, and digital innovation position it to weather near-term economic headwinds while reinforcing long-term growth [23][24]

Procter & Gamble (PG) closed the latest trading day at $170.42, indicating a +1.42% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.55%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.14%. The Consumer Products - Staples industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 160, this industry ranks in the bottom 37% of all industries, numbering over 250. The Zacks Rank system, spanning from #1 (Strong Buy) t ...

Group 1: Stock Performance - Procter & Gamble (PG) closed at $165.65, reflecting a -0.62% change from the previous session, underperforming the S&P 500's daily gain of 1.77% [1] - The stock has decreased by 2.08% over the past month, compared to a loss of 0.33% in the Consumer Staples sector and a 5.73% loss in the S&P 500 [1] Group 2: Upcoming Earnings - Procter & Gamble's earnings report is anticipated on April 24, 2025, with projected earnings of $1.57 per share, indicating a year-over-year growth of 3.29% [2] - The consensus estimate forecasts revenue of $20.52 billion for the upcoming quarter, representing a 1.6% growth compared to the same quarter last year [2] Group 3: Full Year Estimates - For the full year, analysts expect earnings of $6.93 per share and revenue of $85.24 billion, marking changes of +5.16% and +1.43% respectively from the previous year [3] Group 4: Analyst Estimates and Confidence - Changes in analyst estimates for Procter & Gamble are crucial as they reflect the shifting dynamics of short-term business patterns, with positive revisions indicating analysts' confidence in the company's performance [4] Group 5: Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have generated an average annual return of +25% since 1988; Procter & Gamble currently holds a Zacks Rank of 3 (Hold) [6] Group 6: Valuation Metrics - Procter & Gamble is currently traded at a Forward P/E ratio of 24.07, which is a premium compared to the industry average of 20.94 [7] - The company's PEG ratio stands at 3.75, compared to the industry average PEG ratio of 3.38 [7] Group 7: Industry Ranking - The Consumer Products - Staples industry, part of the Consumer Staples sector, holds a Zacks Industry Rank of 152, placing it in the bottom 40% of over 250 industries [8]

Group 1 - The article emphasizes the importance of investing in high-quality stocks and businesses that are managed by disciplined capital allocators [1] - It highlights the characteristics of preferred businesses, which include exceptional returns on capital and the ability to compound invested capital over long periods [1]

Group 1: Company Performance - Procter & Gamble (PG) shares closed at $167.71, reflecting a -1.21% change from the previous day, underperforming the S&P 500's daily loss of 1.07% [1] - Over the last month, PG's shares increased by 4.22%, which is below the Consumer Staples sector's gain of 4.7% and better than the S&P 500's loss of 7.03% [1] - The upcoming earnings per share (EPS) for PG is projected at $1.57, indicating a 3.29% increase year-over-year, with expected revenue of $20.52 billion, a 1.6% increase from the same quarter last year [2] Group 2: Financial Estimates - For the full year, Zacks Consensus Estimates project PG's earnings at $6.90 per share and revenue at $85.24 billion, representing increases of +4.7% and +1.43% respectively from the prior year [3] - There has been a 0.11% decline in the Zacks Consensus EPS estimate over the past month, and PG currently holds a Zacks Rank of 3 (Hold) [6] Group 3: Valuation Metrics - PG is trading at a Forward P/E ratio of 24.59, which is higher than the industry average Forward P/E of 21.4 [7] - The PEG ratio for PG stands at 3.84, compared to the industry average PEG ratio of 3.45 [7] Group 4: Industry Context - The Consumer Products - Staples industry, part of the Consumer Staples sector, has a Zacks Industry Rank of 147, placing it in the bottom 42% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - Procter & Gamble (P&G) maintains its global market leadership through a strong brand portfolio and effective business strategies, achieving a 3% year-over-year organic sales growth in Q2 of fiscal 2025 [1][6] - The company reported a 3% growth in core EPS year-over-year, supported by pricing gains and productivity savings, with North America contributing to volume and market share growth [2][6] - P&G's efficiency initiatives are enhancing margins through cost-saving measures, aiming for up to $1.5 billion in gross savings in the cost of goods sold over the next few years [3][4] Financial Performance - P&G's first-half fiscal 2025 results are strong, with management projecting 2-4% year-over-year all-in sales growth and a 3-5% rise in organic sales for the fiscal year [6][7] - The company anticipates GAAP EPS growth of 10-12% from $6.02 in fiscal 2024, with core EPS expected to increase 5-7% from $6.59, indicating a core EPS range of $6.91-$7.05 [7] Challenges and Risks - P&G faces challenges from macroeconomic conditions and geopolitical tensions, particularly in Greater China, where organic sales declined by 3% in Q2 fiscal 2025 [8][9] - Rising selling, general, and administrative expenses, along with currency risks, are pressuring margins, with projected after-tax headwinds of $200 million from commodity costs and $300 million from foreign exchange rates [10][11] Strategic Initiatives - The company is leveraging digital tools to enhance operational efficiency, expecting to generate $200-$300 million in savings while improving marketing effectiveness [5] - P&G's commitment to sustainability and adaptability is reflected in its ongoing productivity initiatives, which are crucial for maintaining resilience amid market headwinds [12][13]

Core Points - The meeting between the Deputy Director of the State Administration for Market Regulation and the CEO of Procter & Gamble focused on market regulation legislation and enforcement [1] - The State Administration for Market Regulation aims to create a high-level open market environment in line with the decisions of the 20th Central Committee of the Communist Party of China [1] - Procter & Gamble expressed appreciation for the progress made in combating infringement and counterfeiting in China and committed to maintaining compliance in its operations [1]