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Here's How Procter & Gamble (PG) Looks Ahead of Q1 Earnings
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The Procter & Gamble Company (PG - Free Report) is set to report first-quarter fiscal 2023 results on Oct 19, before the opening bell. The company is expected to deliver sales growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at $1.56 per share, indicating a 3.1% decline from the year-ago quarter’s reported figure. The consensus mark has moved down by a penny in the past seven days. For fiscal first-quarter revenues, the consensus mark is pegged at $20.56 billion, suggesting 1.1% growth from the prior-year quarter’s reported figure.
We expect the company’s fiscal first-quarter total revenues to increase 0.6% year over year to $20,451.5 million and the bottom line to decline 2.6% to $1.57 per share.
In the last reported quarter, the company delivered a negative earnings surprise of 1.6%. It has delivered a bottom-line beat of 1.04%, on average, in the trailing four quarters.
Procter & Gamble Company The Price, Consensus and EPS Surprise
Procter & Gamble has been gaining from improved productivity and persistent demand for cleaning products. The company’s first-quarter fiscal 2023 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 5.6%, which suggests an improvement from 4% growth 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 first 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.
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.
On the last reported quarter’s earnings call, Procter & Gamble predicted higher commodity and freight costs to persist throughout fiscal 2023. Our estimate indicates a 0.7% year-over-year decline in gross profit for the fiscal first quarter, with the gross profit margin contracting 60 bps.
Also, currency headwinds are likely to have hurt the company’s performance in the to-be-reported quarter. Rising input costs are expected to have weighed on the fiscal first-quarter performance. Our estimate indicates a 3.1% impact from currency headwinds in the fiscal first quarter.
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 -1.26%.
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.
Albertsons Companies (ACI - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #2. The company is expected to register top and bottom-line growth when it reports the second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for ACI’s quarterly revenues is pegged at $17.6 billion, which suggests growth of 6.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Albertsons Companies’ quarterly earnings has moved up by a penny in the past seven days to 63 cents per share, suggesting 1.6% growth from the year-ago reported number. ACI has delivered an earnings beat of 25.7%, on average, in the trailing four quarters.
The Boston Beer Company (SAM - Free Report) has an Earnings ESP of +11.92% and a Zacks Rank #3 at present. SAM is likely to register top and bottom-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $573.6 million, which suggests growth of 2.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Boston Beer’s quarterly earnings has moved down 1.1% in the past seven days at $3.44 per share, suggesting growth of 15.8% from the year-ago quarter’s reported number. SAM has delivered a negative earnings surprise of 63.9%, on average, in the trailing four quarters.
Archer Daniels Midland (ADM - Free Report) currently has an Earnings ESP of +4.06% and a Zacks Rank #3. ADM is anticipated to register top and bottom-line growth when it reports the third-quarter 2022 results. The Zacks Consensus Estimate for Archer Daniels’ quarterly revenues is pegged at $22.9 billion, indicating an improvement of 12.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Archer Daniels’ bottom line has moved up 3.6% in the past seven days at $1.42 per share. However, the consensus estimate suggests growth of 46.4% from the prior-year quarter’s reported figure. ADM has delivered an earnings beat of 20.1%, on average, in the trailing four quarters.
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Here's How Procter & Gamble (PG) Looks Ahead of Q1 Earnings
The Procter & Gamble Company (PG - Free Report) is set to report first-quarter fiscal 2023 results on Oct 19, before the opening bell. The company is expected to deliver sales growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at $1.56 per share, indicating a 3.1% decline from the year-ago quarter’s reported figure. The consensus mark has moved down by a penny in the past seven days. For fiscal first-quarter revenues, the consensus mark is pegged at $20.56 billion, suggesting 1.1% growth from the prior-year quarter’s reported figure.
We expect the company’s fiscal first-quarter total revenues to increase 0.6% year over year to $20,451.5 million and the bottom line to decline 2.6% to $1.57 per share.
In the last reported quarter, the company delivered a negative earnings surprise of 1.6%. It has delivered a bottom-line beat of 1.04%, on average, in the trailing four quarters.
Procter & Gamble Company The Price, Consensus and EPS Surprise
Procter & Gamble Company The price-consensus-eps-surprise-chart | 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 first-quarter fiscal 2023 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 5.6%, which suggests an improvement from 4% growth 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 first 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.
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.
On the last reported quarter’s earnings call, Procter & Gamble predicted higher commodity and freight costs to persist throughout fiscal 2023. Our estimate indicates a 0.7% year-over-year decline in gross profit for the fiscal first quarter, with the gross profit margin contracting 60 bps.
Also, currency headwinds are likely to have hurt the company’s performance in the to-be-reported quarter. Rising input costs are expected to have weighed on the fiscal first-quarter performance. Our estimate indicates a 3.1% impact from currency headwinds in the fiscal first quarter.
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 -1.26%.
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.
Albertsons Companies (ACI - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #2. The company is expected to register top and bottom-line growth when it reports the second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for ACI’s quarterly revenues is pegged at $17.6 billion, which suggests growth of 6.8% 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 Albertsons Companies’ quarterly earnings has moved up by a penny in the past seven days to 63 cents per share, suggesting 1.6% growth from the year-ago reported number. ACI has delivered an earnings beat of 25.7%, on average, in the trailing four quarters.
The Boston Beer Company (SAM - Free Report) has an Earnings ESP of +11.92% and a Zacks Rank #3 at present. SAM is likely to register top and bottom-line growth when it reports the third-quarter 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $573.6 million, which suggests growth of 2.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Boston Beer’s quarterly earnings has moved down 1.1% in the past seven days at $3.44 per share, suggesting growth of 15.8% from the year-ago quarter’s reported number. SAM has delivered a negative earnings surprise of 63.9%, on average, in the trailing four quarters.
Archer Daniels Midland (ADM - Free Report) currently has an Earnings ESP of +4.06% and a Zacks Rank #3. ADM is anticipated to register top and bottom-line growth when it reports the third-quarter 2022 results. The Zacks Consensus Estimate for Archer Daniels’ quarterly revenues is pegged at $22.9 billion, indicating an improvement of 12.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Archer Daniels’ bottom line has moved up 3.6% in the past seven days at $1.42 per share. However, the consensus estimate suggests growth of 46.4% from the prior-year quarter’s reported figure. ADM has delivered an earnings beat of 20.1%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.