Home News Procter & Gamble expected to post lower revenue despite revenue growth

Procter & Gamble expected to post lower revenue despite revenue growth

by SuperiorInvest

Key takeaways

  • Procter & Gamble is expected to post a 4% increase in revenue for the second quarter, but net income is expected to fall 0.8%.
  • The consumer products maker has reported better-than-expected earnings in the past two quarters as higher prices have boosted revenue.
  • Analysts predict a slight rebound in earnings per share, which will reach $1.59.

Analysts expect Procter & Gamble (PG) to report a drop in revenue in its quarterly earnings on Tuesday, as the consumer products maker looks to maintain the momentum of recent quarters.

Procter & Gamble is projected to report revenue of $21.6 billion for the second quarter of fiscal 2024, up nearly 4% from the same period a year earlier, according to data from Visible Alpha. Second-quarter net income is projected at $3.9 billion, a 0.8% drop from last year, and earnings per share rose slightly year-over-year to $1.59.

Analyst estimates for the second quarter of 2024 First quarter of 2024 Second quarter of 2023
Revenue $21.6 billion $21.9 billion $20.8 billion
Earnings per share $1.59 $1.83 $1.59
Net income 3.9 billion dollars 4.5 billion dollars 3.9 billion dollars

Key metrics

P&G beat earnings in the past two quarters, showing that consumers largely accepted the price increases that inflation imposed on its consumer products, which include Tide, Pampers, Bounty and Charmin. With inflation trending downward in recent months, investors will be watching to see if P&G raises prices again in the second quarter.

Following price increases on its products over the past two quarters, the company saw sales volumes decline in some segments, such as baby care and baby care, where higher prices kept revenue high despite the drop in sales.

Stock Spotlight

A component of the Dow Jones Industrial Average, Procter & Gamble underperformed the index as the consumer products maker’s share price fell more than 3% in 2023. compared to a 13% gain for the Dow Jones, and well below the S&P 500’s 24% gain.

While the company saw increases in its stock price tied to positive earnings reports, it also suffered when it announced $2.5 billion in restructuring charges tied to its Gillette business.

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