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Factors to Influence Procter & Gamble (PG) in Q4 Earnings
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The Procter & Gamble Company (PG - Free Report) is set to report fourth-quarter fiscal 2022 results on Jul 29, before the opening bell. The company is expected to deliver sales and earnings growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings is pegged at $1.23 per share, indicating 8.6% growth from the year-ago quarter’s reported figure. The consensus mark has moved down by a penny in the past seven days. For fiscal fourth-quarter revenues, the consensus mark is pegged at $19.4 billion, suggesting 2.4% growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the company’s fiscal 2022 earnings is pegged at $5.83 per share, indicating 3% growth from the year-ago quarter’s reported figure. The consensus mark has moved down by a penny in the past seven days. For fiscal 2022 revenues, the consensus mark is pegged at $80.1 billion, suggesting 5.2% growth from the prior-year quarter’s reported figure.
In the last reported quarter, the company delivered an earnings surprise of 3.91%. It has delivered a bottom-line beat of 2.6%, on average, in the trailing four quarters.
Procter & Gamble Company The Price and EPS Surprise
Procter & Gamble has been gaining from improved productivity and persistent demand for cleaning products. The company’s fourth-quarter fiscal 2022 results are expected to reflect the benefits of continued strength in brands and appropriate strategies, which have been aiding organic sales growth. Notably, the Zacks Consensus Estimate for organic sales growth is pegged at 7.3%, which suggests an improvement from the 3.2% reported in the prior-year quarter.
The company has been focused on productivity and cost-saving plans, which have been aiding its margins. PG has been witnessing cost savings and efficiency improvements across all facets of its business, driven by the productivity program. Its continued business investments and efforts to offset macro cost headwinds, and balanced top and bottom-line growth underscore its productivity efforts. Gains from productivity savings and pricing are expected to have aided margins and the bottom line in the fiscal fourth quarter.
Moreover, the company is likely to have witnessed SG&A expense leverage, owing to savings from overhead and marketing expenses, and cost leverage gains due to higher sales and real estate.
On the last reported quarter’s earnings call, the company anticipated all-in sales growth of 4-5% for fiscal 2022, with organic sales growth of 6-7%. EPS, on a reported basis, is expected to increase 6-9%, whereas the company reported $5.50 in fiscal 2021. Core EPS for fiscal 2022 is anticipated to grow 3-6% from $5.66 earned in fiscal 2021.
However, unfavorable mix, commodity cost inflation, increase in freight costs, and product and packaging investments are expected to have marred margins in the to-be-reported quarter. Also, currency headwinds are likely to have hurt the performance in the to-be-reported quarter. Also, rising input costs are expected to have weighed on the fiscal fourth-quarter performance.
On the last reported quarter’s earnings call, Procter & Gamble predicted higher commodity and freight costs to persist throughout fiscal 2022. The company projected currency movements to negatively impact all-in sales growth by 2% in fiscal 2022.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Procter & Gamble this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Procter & Gamble has a Zacks Rank #4 (Sell) and an Earnings ESP of +0.15%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
Corteva (CTVA - Free Report) has an Earnings ESP of +0.20% and currently sports a Zacks Rank #1. The company is expected to register top and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for CTVA’s quarterly revenues is pegged at $6.18 billion, which suggests growth of 9.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Corteva’s quarterly earnings has moved up by a penny in the past seven days to $1.47 per share, suggesting 5% growth from the year-ago reported number. CTVA has delivered an earnings beat of 23.3%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) has an Earnings ESP of +1.54% and flaunts a Zacks Rank #1 at present. HSY is likely to register top and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.22 billion, which suggests growth of 11.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Hershey’s quarterly earnings has been unchanged in the past 30 days at $1.66 per share, suggesting growth of 12.9% from the year-ago quarter’s reported number. HSY has delivered an earnings beat of 7.9%, on average, in the trailing four quarters.
Kellogg's (K - Free Report) currently has an Earnings ESP of +2.01% and a Zacks Rank #3. K is anticipated to register top-line growth when it reports the second-quarter fiscal 2022 results. The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.64 billion, indicating an improvement of 2.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kellogg's bottom line has been unchanged in the past 30 days at $1.05 per share. However, the consensus estimate suggests a decline of 7.9% from the prior-year quarter. K has delivered an earnings beat of 12.8%, on average, in the trailing four quarters.
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Factors to Influence Procter & Gamble (PG) in Q4 Earnings
The Procter & Gamble Company (PG - Free Report) is set to report fourth-quarter fiscal 2022 results on Jul 29, before the opening bell. The company is expected to deliver sales and earnings growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal fourth-quarter earnings is pegged at $1.23 per share, indicating 8.6% growth from the year-ago quarter’s reported figure. The consensus mark has moved down by a penny in the past seven days. For fiscal fourth-quarter revenues, the consensus mark is pegged at $19.4 billion, suggesting 2.4% growth from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for the company’s fiscal 2022 earnings is pegged at $5.83 per share, indicating 3% growth from the year-ago quarter’s reported figure. The consensus mark has moved down by a penny in the past seven days. For fiscal 2022 revenues, the consensus mark is pegged at $80.1 billion, suggesting 5.2% growth from the prior-year quarter’s reported figure.
In the last reported quarter, the company delivered an earnings surprise of 3.91%. It has delivered a bottom-line beat of 2.6%, on average, in the trailing four quarters.
Procter & Gamble Company The Price and EPS Surprise
Procter & Gamble Company The price-eps-surprise | Procter & Gamble Company The Quote
Key Factors to Note
Procter & Gamble has been gaining from improved productivity and persistent demand for cleaning products. The company’s fourth-quarter fiscal 2022 results are expected to reflect the benefits of continued strength in brands and appropriate strategies, which have been aiding organic sales growth. Notably, the Zacks Consensus Estimate for organic sales growth is pegged at 7.3%, which suggests an improvement from the 3.2% reported in the prior-year quarter.
The company has been focused on productivity and cost-saving plans, which have been aiding its margins. PG has been witnessing cost savings and efficiency improvements across all facets of its business, driven by the productivity program. Its continued business investments and efforts to offset macro cost headwinds, and balanced top and bottom-line growth underscore its productivity efforts. Gains from productivity savings and pricing are expected to have aided margins and the bottom line in the fiscal fourth quarter.
Moreover, the company is likely to have witnessed SG&A expense leverage, owing to savings from overhead and marketing expenses, and cost leverage gains due to higher sales and real estate.
On the last reported quarter’s earnings call, the company anticipated all-in sales growth of 4-5% for fiscal 2022, with organic sales growth of 6-7%. EPS, on a reported basis, is expected to increase 6-9%, whereas the company reported $5.50 in fiscal 2021. Core EPS for fiscal 2022 is anticipated to grow 3-6% from $5.66 earned in fiscal 2021.
However, unfavorable mix, commodity cost inflation, increase in freight costs, and product and packaging investments are expected to have marred margins in the to-be-reported quarter. Also, currency headwinds are likely to have hurt the performance in the to-be-reported quarter. Also, rising input costs are expected to have weighed on the fiscal fourth-quarter performance.
On the last reported quarter’s earnings call, Procter & Gamble predicted higher commodity and freight costs to persist throughout fiscal 2022. The company projected currency movements to negatively impact all-in sales growth by 2% in fiscal 2022.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Procter & Gamble this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, this is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Procter & Gamble has a Zacks Rank #4 (Sell) and an Earnings ESP of +0.15%.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to deliver an earnings beat.
Corteva (CTVA - Free Report) has an Earnings ESP of +0.20% and currently sports a Zacks Rank #1. The company is expected to register top and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for CTVA’s quarterly revenues is pegged at $6.18 billion, which suggests growth of 9.8% from the prior-year quarter’s reported figure.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Corteva’s quarterly earnings has moved up by a penny in the past seven days to $1.47 per share, suggesting 5% growth from the year-ago reported number. CTVA has delivered an earnings beat of 23.3%, on average, in the trailing four quarters.
Hershey (HSY - Free Report) has an Earnings ESP of +1.54% and flaunts a Zacks Rank #1 at present. HSY is likely to register top and bottom-line growth when it reports the second-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.22 billion, which suggests growth of 11.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Hershey’s quarterly earnings has been unchanged in the past 30 days at $1.66 per share, suggesting growth of 12.9% from the year-ago quarter’s reported number. HSY has delivered an earnings beat of 7.9%, on average, in the trailing four quarters.
Kellogg's (K - Free Report) currently has an Earnings ESP of +2.01% and a Zacks Rank #3. K is anticipated to register top-line growth when it reports the second-quarter fiscal 2022 results. The Zacks Consensus Estimate for Kellogg's quarterly revenues is pegged at $3.64 billion, indicating an improvement of 2.5% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Kellogg's bottom line has been unchanged in the past 30 days at $1.05 per share. However, the consensus estimate suggests a decline of 7.9% from the prior-year quarter. K has delivered an earnings beat of 12.8%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.