Earnings Alerts

Procter & Gamble Co (PG) Earnings: 1Q Core EPS Surpasses Estimates Despite Sales Dip

By October 18, 2024 No Comments
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  • P&G’s first-quarter core earnings per share (EPS) were $1.93, beating estimates of $1.90 and improving from $1.83 year-over-year.
  • Net sales totaled $21.74 billion, slightly below the estimate of $21.96 billion, marking a 0.6% decrease from the previous year.
  • The Beauty segment generated $3.89 billion, missing the estimated $4.11 billion and showing a decrease in organic sales by 2% against an estimate of a 2.75% increase.
  • Grooming revenue was $1.72 billion, slightly below the $1.75 billion estimate, with organic sales growth of 3%, which missed the projected 4.63% increase.
  • Healthcare revenues were $3.15 billion, slightly beating the $3.14 billion estimate, with a stronger than expected organic sales increase of 4%.
  • Fabric & Home Care revenue was $7.71 billion, close to the estimate of $7.7 billion, with organic sales up by 3%, surpassing the 1.99% estimate.
  • Baby, Feminine & Family Care revenue was $5.10 billion, slightly below the $5.14 billion estimate. Organic sales were stable at 0%, missing the expected 1.05% growth.
  • A foreign currency impact negatively affected sales by 1%, which was better than the expected 1.63% negative impact.
  • Price increases contributed a 1% positive impact on sales, outperforming the expected 0.81% impact.
  • Organic volume growth achieved an increase of 1%, slightly above the 0.86% estimate.
  • Overall organic revenue increased by 2%, close to the anticipated 2.06% growth.
  • Gross margin was 52.1%, slightly below the 52.4% estimate.
  • Adjusted free cash flow was $3.87 billion, not reaching the estimated $4.31 billion.
  • P&G maintains its forecast for 2025, expecting organic revenue growth of 3% to 5%, aligning with an estimate of 3.43%.
  • The company also continues to anticipate core EPS growth of 5% to 7%, with core EPS projected in the range of $6.91 to $7.05, against a $6.95 estimate.

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Procter & Gamble Co on Smartkarma

Analyst coverage of Procter & Gamble Co on Smartkarma by Baptista Research reveals a mixed sentiment. In the report “The Procter & Gamble Company: These Are The 4 Biggest Reasons Driving Our Pessimistic Outlook! – Financial Forecasts,” the analysts detail P&G’s impressive performance for the fiscal year ’24, showing sustained growth despite global economic challenges. The company achieved a 4% organic sales growth driven by strong performance in key segments like Home Care, Hair Care, and Grooming.

Contrastingly, in “The Procter & Gamble Company: What Are Our Growth Expectations For P&G In A Highly Dynamic Market? – Major Drivers,” Baptista Research highlights P&G’s positive outlook. The company’s recent earnings reflect strong sales and market share results, boosted by an effective integrated strategy. Projections for core earnings per share have been raised, aligning with fiscal year guidance targets for organic sales growth and shareholder return. This analysis showcases the complex yet profitable landscape P&G is navigating in the market.


A look at Procter & Gamble Co Smart Scores

FactorScoreMagnitude
Value2
Dividend3
Growth3
Resilience3
Momentum4
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Procter & Gamble Co, a global consumer product manufacturer, has received a mixed bag of Smart Scores indicating its long-term outlook. With a moderate Value score indicating its stock price relative to the company’s earnings, it suggests potential for growth but not an outright bargain. The Dividend and Growth scores sit in the middle ground, showcasing stability in payouts and a steady pace of expansion in its industry. Meanwhile, the Resilience score reflects the company’s ability to weather economic downturns with relative strength. Procter & Gamble’s highest score in Momentum signals a positive trend in its stock performance, hinting at growing investor interest and confidence in its future prospects.

With a diverse product portfolio encompassing laundry, cleaning, beauty care, and more, Procter & Gamble Co maintains a strong foothold in global markets. Its products reach consumers through various retail channels, from mass merchandisers to neighborhood stores. While facing competition in the consumer goods sector, the company’s Smart Scores reflect a blend of stability and potential growth, underscoring its position as a key player in the industry. Investors may find value in its consistent dividend payouts, solid growth trajectory, and demonstrated resilience, coupled with the positive momentum driving its stock performance forward.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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