Consumer goods company Procter & Gamble Co. (PG) reported mixed results in its Fiscal first quarter. P&G’s adjusted earnings grew 5% year-over-year to $1.93 per share, beating Street estimates of $1.90 per share.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
P&G’s Sales Dipped in Q1
However, the firm’s sales dipped by 1% year-over-year in the first quarter to $21.7 billion and fell short of Street estimates of $22 billion. Amid an uncertain U.S. economy, the company is feeling the pressure as lower-income consumers shift their focus to finding the lowest prices possible. This hunt for affordability has driven many shoppers toward competitors offering discounts and private-label brands, impacting P&G’s sales.
Additionally, the company is also grappling with weak demand in China, where it has struggled to keep pace with rivals. This was reflected in the company’s declining volumes in China, particularly in the beauty and healthcare segment.
P&G Declares Quarterly Dividend
In addition, the company’s Board of Directors declared a quarterly dividend of $1.0065 per share, payable on or after November 15 to common stock shareholders of record at the close of business on October 18. Furthermore, the quarterly dividend will be payable to Series A and Series B ESOP Convertible Class A Preferred Stock shareholders.
P&G Reiterated Its FY25 Outlook
Looking ahead, Procter & Gamble expects its organic sales to grow in the range of 3% to 5% year-over-year in FY25, while adjusted earnings are likely to be between $6.91 and $7.05 per share, with a mid-point estimate of $6.98. For reference, analysts have forecasted the company to report earnings of $6.95 per share.
What Is the Target Price for PG?
Analysts remain cautiously optimistic about PG stock, with a Moderate Buy consensus rating based on 11 Buys and nine Holds. Over the past year, PG has increased by more than 15%, and the average PG price target of $175.94 implies an upside potential of 2.1% from current levels. These analyst ratings are likely to change following PG’s results today.
