Procter & Gamble (PG) Misses FQ2 Revenue Estimates, Shares Drop 1.7%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Revenue Shortfall: Procter & Gamble reported FQ2 revenue of $22.21 billion, missing estimates by $80 million, indicating struggles in growth amid challenging consumer and geopolitical conditions.
- Segment Performance: The beauty segment saw organic sales rise 4% year-over-year, driven by innovation-led pricing and volume increases in Latin America and Europe, while the Baby Care and Family Care segments declined by 4%, reflecting unit volume decreases and unfavorable geographic mix.
- Margin Compression: Core gross margin decreased by 50 basis points compared to the prior year, as benefits from 160 basis points in productivity savings and 50 basis points in pricing were offset by unfavorable mix and rising costs, highlighting increasing cost pressures.
- Outlook Ahead: P&G expects net impacts from foreign exchange and acquisitions to contribute approximately one percentage point to overall sales growth, maintaining its organic sales growth outlook in the range of flat to up 4%, demonstrating confidence in stronger results for the second half of the fiscal year.
Analyst Views on PG
Wall Street analysts forecast PG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PG is 164.50 USD with a low forecast of 150.00 USD and a high forecast of 180.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
10 Buy
7 Hold
0 Sell
Moderate Buy
Current: 146.060
Low
150.00
Averages
164.50
High
180.00
Current: 146.060
Low
150.00
Averages
164.50
High
180.00
About PG
The Procter & Gamble Company is focused on providing branded consumer packaged goods to consumers across the world. The Company’s segments include Beauty, Grooming, Health Care, Fabric & Home Care and Baby, Feminine & Family Care. The Company’s products are sold in approximately 180 countries and territories primarily through mass merchandisers, e-commerce, including social commerce channels, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, specialty beauty stores, including airport duty-free stores), high-frequency stores, pharmacies, electronics stores and professional channels. It also sells direct to individual consumers. It has operations in approximately 70 countries. It offers products under brands, such as Head & Shoulders, Herbal Essences, Pantene, Rejoice, Olay, Old Spice, Safeguard, Secret, SK-II, Braun, Gillette, Venus, Crest, Oral-B, Ariel, Downy, Gain, Tide, Always, Always Discreet, Tampax, Bounty and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
