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Procter & Gamble (PG) Slips Post Q4 Earnings: ETFs in Focus
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Procter & Gamble Company (PG - Free Report) has reported fourth-quarter fiscal 2024 results, wherein earnings surpassed the Zacks Consensus Estimate and improved year over year. Meanwhile, sales missed the consensus mark and were flat year over year. The company’s organic sales grew year over year, driven by robust pricing and volume trends. Shares fell 4.8% in the key trading session on Jul 30, 2024.
Inside the Headline
Procter & Gamble’s core earnings of $1.40 per share increased 2% from the year-ago quarter and beat the Zacks Consensus Estimate of $1.37. Currency-neutral net earnings per share (EPS) rose 6% year over year. The company has reported net sales of $20.5 million, flat year over year. Sales missed the Zacks Consensus Estimate of $20.72 billion.
The increase in sales can be attributed to increases in pricing and volume of 1% each, offset by a negative currency impact of 2%. On an organic basis (excluding the impacts of acquisitions, divestitures and foreign exchange), revenues rose 2% year over year, backed by improved pricing and volume.
China, P&G’s second-largest market, continues to struggle, according to a CNBC article. The company didn’t disclose the region’s quarterly volume, but organic sales in Greater China slumped 9%. Sluggish demand in China contributed to volume declines for P&G’s beauty business.
For fiscal 2025, P&G anticipates core net earnings per share in a range of $6.91 to $7.05. The company reiterated its revenue outlook of 2% to 4% growth.
ETFs in Focus
The stock P&G has solid exposure to several consumer staples ETFs. These ETFs include iShares U.S. Consumer Staples ETF (IYK - Free Report) , Consumer Staples Select Sector SPDR Fund (XLP - Free Report) , Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) and Vanguard Consumer Staples ETF (VDC - Free Report) . These funds invest assets in the Procter & Gamble stock in the range of 17% to 12%.
Generally, when one stock accounts for more than 10% of an ETF's weight, its individual performance decides much of the fund’s price movement. The P&G stock currently has a Zacks Rank #3 (Hold). Although the stock hails from a top-ranked (top 29%) Zacks Soap and Cleaning Materials Industry and a bottom-ranked (bottom 6%) Zacks Consumer Staples Sector.
Against this moderately-downbeat scenario, it is better to bet on Procter & Gamble through the ETF method as the basket approach minimizes the company-specific concentration risks.
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Procter & Gamble (PG) Slips Post Q4 Earnings: ETFs in Focus
Procter & Gamble Company (PG - Free Report) has reported fourth-quarter fiscal 2024 results, wherein earnings surpassed the Zacks Consensus Estimate and improved year over year. Meanwhile, sales missed the consensus mark and were flat year over year. The company’s organic sales grew year over year, driven by robust pricing and volume trends. Shares fell 4.8% in the key trading session on Jul 30, 2024.
Inside the Headline
Procter & Gamble’s core earnings of $1.40 per share increased 2% from the year-ago quarter and beat the Zacks Consensus Estimate of $1.37. Currency-neutral net earnings per share (EPS) rose 6% year over year. The company has reported net sales of $20.5 million, flat year over year. Sales missed the Zacks Consensus Estimate of $20.72 billion.
The increase in sales can be attributed to increases in pricing and volume of 1% each, offset by a negative currency impact of 2%. On an organic basis (excluding the impacts of acquisitions, divestitures and foreign exchange), revenues rose 2% year over year, backed by improved pricing and volume.
China, P&G’s second-largest market, continues to struggle, according to a CNBC article. The company didn’t disclose the region’s quarterly volume, but organic sales in Greater China slumped 9%. Sluggish demand in China contributed to volume declines for P&G’s beauty business.
For fiscal 2025, P&G anticipates core net earnings per share in a range of $6.91 to $7.05. The company reiterated its revenue outlook of 2% to 4% growth.
ETFs in Focus
The stock P&G has solid exposure to several consumer staples ETFs. These ETFs include iShares U.S. Consumer Staples ETF (IYK - Free Report) , Consumer Staples Select Sector SPDR Fund (XLP - Free Report) , Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) and Vanguard Consumer Staples ETF (VDC - Free Report) . These funds invest assets in the Procter & Gamble stock in the range of 17% to 12%.
Generally, when one stock accounts for more than 10% of an ETF's weight, its individual performance decides much of the fund’s price movement. The P&G stock currently has a Zacks Rank #3 (Hold). Although the stock hails from a top-ranked (top 29%) Zacks Soap and Cleaning Materials Industry and a bottom-ranked (bottom 6%) Zacks Consumer Staples Sector.
Against this moderately-downbeat scenario, it is better to bet on Procter & Gamble through the ETF method as the basket approach minimizes the company-specific concentration risks.