Shares of Procter & Gamble (PG) are up 3% on April 24 after the consumer goods company reported first-quarter financial results that beat Wall Street’s forecasts across the board.
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The company, whose products include Tide laundry detergent and Pampers diapers, posted earnings per share (EPS) of $1.63, which topped the $1.56 expected on Wall Street. Revenue of $21.24 billion surpassed the $20.5 billion consensus forecast of analysts. Sales were up 7% from a year earlier.
Management trumpeted that total sales volumes for its products, which also include Gillette razors, grew in the first quarter for the first time in a year. Like many consumer companies, Procter & Gamble has seen demand for its products fade as consumers struggle with persistently high inflation.
The Beauty Division Shines
Procter & Gamble’s beauty division, which includes shampoo products such as Head & Shoulders, was the best performer during the quarter, posting 5% volume growth. Grooming and health care were disappointments, with both segments reporting volume declines of 2%.
In terms of guidance, the company reiterated its full-year forecast of 1% to 5% sales growth and earnings per share growth of 1% to 6%. Prior to the bounce higher on April 24, PG stock had declined nearly 10% over the last 12 months.
Is PG Stock a Buy?
Procter & Gamble’s stock has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on nine Buy and nine Hold recommendations issued in the past three months. The average PG price target of $158.58 implies 7% upside from current levels.
